State of North Carolina two-year state plan for Title I of the Workforce Investment Act and the Wagner-Peyser Act |
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: : Approved by US Department of Labor June 29, 2007 2 of 138 Approved by USDOL June 29, 2007 .......................................................................3 ......................................................................................................................................4 .........................................................................................13 ..............................................................................14 ..................................................................19 .......................................................................................................32 .....................................................................................44 ..................................................................................47 ................................49 ............................................................................................................................67 .....................................................................................................................96 ......................................................................................................110 .....................................................................................112 ..............................................................................................114 ........................................................115 Appendix 1 includes a List of Acronyms and Abbreviations. 3 of 138 Approved by USDOL June 29, 2007 See text below. The North Carolina Commission on Workforce Development (State Board), through coordination by its staff, assumes the lead role in the development of the State Plan. Guidance provided by the Governor’s policy advisors is incorporated, as well as input from a number of sources, including the following: • State Board members, • Major State agency stakeholders, • North Carolina Economic Development Association, • North Carolina Economic Development Board, • Chambers of Commerce, • Members of the Business Community, and • Members and staff of Local Area Workforce Development Boards. Input for developing and finalizing the State Plan includes the following: 1. Electronic Survey – for the original submission of the five-year planning cycle (July 1, 2005-June 30, 2010, an electronic survey was distributed to the aforementioned stakeholders. The survey included four questions that asked for feedback on the most important workforce issues for North Carolina and ways to enhance the One-Stop System (known in North Carolina as the JobLink Career Center System or JobLink). Stakeholders were asked to forward the survey to others they deemed appropriate. A compilation of the survey results was reviewed and considered. 2. Individual Meetings - members of the Commission Executive Committee and its Executive Director held an open forum with those in the workforce development community and conducted one-on-one meetings with major State agency leaders for the purpose of information-gathering and honest discussion. State agencies that participated in the individual meetings included the Employment Security Commission (ESC) of North Carolina, the North Carolina Community College System (NCCCS), the North Carolina Department of Health and Human Services (DHHS), and the North Carolina Department of Commerce (DOC). 3. Web Site Review - the final draft of the State Plan was posted on the State Board’s Web site for public comment, and copies were distributed to the Governor and State Board members for review. Additionally, electronic notification was sent to the workforce development community at large, seeking comments and recommendations. Recommendations and suggestions from these methodologies, collaborative efforts in development, and review by key State agency stakeholders have combined to shape North 4 of 138 Approved by USDOL June 29, 2007 Carolina’s State Plan. The third and fourth years’ modification has incorporated additional insight from the North Carolina Commission on Workforce Development’s ‘State of the North Carolina Workforce’ Report (January 2007). Posting of the modification and electronic notification were widely distributed. The modification development timeline was created in February 2007, broadly shared, and followed throughout the collaborative plan modification process. The public comment period and subsequent input were used. In his second term of office, Governor Michael Easley has continued to move North Carolina toward his vision for One North Carolina. The One North Carolina Agenda is a set of goals that builds the State’s educational, economic, and social support infrastructure … “where every citizen has a chance in the winner’s circle of our economy” (Governor Easley). Key elements of the One North Carolina Agenda include the following: • Promote economic prosperity with an aggressive development strategy designed to bring high-skilled jobs, a high-tech infrastructure, and a quality transportation system to every region of North Carolina. • Build a system of education that gives every child every opportunity to succeed, regardless of geographic location or economic condition. • Implement the More at Four pre-kindergarten program to help at-risk four-year olds start school healthy and ready to learn. • Recruit and retain the highest quality educators. • Develop a workforce prepared to meet the demands of a global economy by expanding life-long learning opportunities. In 2006 there were nearly 100,000 new jobs created in North Carolina for a 2.5 percent growth rate. The unemployment rate for January 2007 was 4.6 percent, the lowest rate since April 2006. North Carolinians understand that if our economy is to continue to grow and compete globally, we must have the best-educated workforce. The more our children learn, the more qualified they are for high-skilled jobs for the 21st century. Governor Easley’s vision for North Carolina’s workforce development system provides a continuum of employment, education, and training services for citizens and business that reflects community needs. As resources decrease and needs increase, the workforce development system is expected to provide services in a seamless, unified approach that is effective and efficient. The workforce development system must offer “end to end” education, employment, and training solutions that begin with excellent public schools that impact business recruitment and retention, and that offer continuous learning and skill building opportunities for emerging and incumbent workers. North Carolina faces significant challenges as it seeks to create quality jobs for all North Carolinians. While the economy is steadily improving, the State is still challenged by the effects of a four-year, manufacturing-led downturn that continues to be influenced by global economic forces. During this period, the State lost over 160,000 manufacturing jobs to business closings and permanent layoffs, mostly in the textile and furniture industries. The economy has replaced many of those lost jobs, but often at lower wages or with temporary work. In January 2007, the 5 of 138 Approved by USDOL June 29, 2007 North Carolina Commission on Workforce Development (the State Board) produced a report titled the “State of the North Carolina Workforce” (Appendix 18). This report is an in-depth quantitative analysis of the current and projected labor market supply and demand with a goal of identifying our challenges and opportunities for completing a successful economic transition. The report identified key trends that will influence industries demand for labor and the supply of workers available to meet the demand within the period of 2007-2017. These key trends included: • North Carolina’s traditional “middle jobs”—those that paid a family-sustaining wage and required minimal formal education or training—are disappearing as part of this transition. • New job creation is concentrated in certain fast-growing metropolitan areas. • Many areas of North Carolina are not prospering from the economic transformation. • The future prosperity of all North Carolinians depends on achieving higher educational attainment levels for all citizens. • Impending baby-boom retirements will exacerbate an emerging skills gap among experienced, skilled workers. • High-skill in-migrants will help fill part, but not all, of this skills gap. • Low-skill in-migrants present both opportunities and challenges in meeting the state’s workforce needs. Because North Carolina is widely acknowledged to have an exceptional business climate, the State is aggressively investing in getting its economy growing through a transition from what was a predominately labor-intensive manufacturing base to one which is knowledge–based, characterized by a highly skilled, value-added workforce. Education levels must increase across the board to meet the growing demand for higher skilled workers over the next decade. In the near term, North Carolina is stimulating its economy by building on its transportation and education infrastructure. Governor Easley’s plan is to enhance roads and bridges so that citizens can get from where they choose to live to good jobs, and so that business and industry will have efficient transportation outlets to move products to market. The State will continue to invest in its universities and community colleges to support the demand for training and retraining its workforce, including retraining for workers who lost their jobs during the economic downturn, a downturn permanently impacted by globalization. The State will continue to build on its investments in growth industries like biotechnology, and expects to excel in this area, in research, development, and bioprocessing. North Carolina will also target companies that apply new and innovative technology to remain competitive in traditional industries, such as textiles and furniture. In the long term, North Carolina will continue to invest in education priorities as identified in Governor Easley’s One North Carolina Agenda. Education and training will be key success factors as North Carolina moves toward a knowledge-driven economy. The quality of the State’s educational and training system and the ability to continuously re-train the workforce will maintain the State’s attractiveness to companies looking to move to or expand in North Carolina. It will require strong public/private partnerships and collaborations, and a unified public workforce development system that can respond quickly to workforce and economic needs in local communities through service delivery and resource leveraging. 6 of 138 Approved by USDOL June 29, 2007 See text below North Carolina faces an unprecedented number of workforce and economic challenges that test government, business, and community leaders at the State and local levels. The economic downturn, market globalization, and worker dislocations have adversely impacted North Carolina. The State Economic Development Board’s (EDB) strategic plan recognizes that the transition of the State’s economy from labor-intensive to knowledge-based (workplace environments) is directly linked to the skills of the workforce. The State will experience a fluid and complex business environment – an environment where all workers will be needed with skills that promote increased productivity. The EDB, working closely with the Governor’s office and the Commission on Workforce Development, appointed a subcommittee on Workforce Development Governance and Accountability (Subcommittee). The EDB charged the Subcommittee with examining the state level workforce development structure of program governance, management, and accountability, and with making recommendations on how this structure must function to effectively meet current and future economic and workforce needs. The Subcommittee found that the JobLink Career Center system (North Carolina’s One- Stop service delivery network), including state and local level partnerships, has invested significant time and resources in growing this service delivery model in North Carolina. It found agreement among public and private stakeholders that this system is the right approach for delivering market-driven services to workers and employers. However, it determined that the JobLink system has not reached the level of resource and service integration needed by workers and businesses at the local level. The Subcommittee also recognized significant budget and service capacity constraints within key workforce development agencies at the state and local levels, and recognizes that current and future needs will demand flexibility, easy service access, and enhanced services to new and existing business and industry. The Subcommittee identified the following needs in the state level workforce development structure: • Enhancing methods for resource leveraging to counter budget and service delivery capacity issues; • A common vision that guides policy, program design, and fund utilization; and • Clear lines of accountability and communication that support effective service delivery to system customers. The EDB Subcommittee recommended the establishment of a state level workforce development management alliance (Alliance). This Alliance would be charged with implementing plans, policies, and strategic initiatives that involve multiple agency programs and resources. The Subcommittee also recommended that an individual, designated and accountable to the Governor, and with a clearly defined role and line of authority, chair this Alliance. Other Alliance membership would include the following: • Chairman of the Employment Security Commission, • President of the Community College System, • Secretary of the Department of Commerce, and • Secretary of the Department of Health and Human Services. 7 of 138 Approved by USDOL June 29, 2007 The EDB and the Commission (State Board) endorsed this recommendation. In 2006, the Governor established the Workforce Alliance (the Alliance) as recommended by the State Board and the Economic Development Board. The Alliance is charged with the following responsibilities: • Planning, policy development, and funding across agency and program lines, • Clarity in accountability and communication, • Support and alignment of the work of the Commission and the State EDB, • Enhanced service planning for response to business recruitment and expansion and worker dislocations, • Enhanced service integration and resource-sharing within the JobLink Career Center system, and • Identification of system capacity and staff development needs. The Alliance is expected to work closely with the Commission to operationally put in place the Governor’s vision for a workforce development system that responds to North Carolina’s economic needs with a seamless system of services operating within a common infrastructure at the state, regional, and local levels. This system is built around a common vision for workforce and economic development, strong state and local governance structures, a clear and accountable state level management structure, and the ability to respond to worker and business needs with flexibility and creativity. Governor Easley is committed to providing lifelong learning opportunities for the citizens of North Carolina. The State recognizes the importance of quality public school education beginning at early ages, and the importance of continued education and skills attainment throughout one’s career. North Carolina will continue to leverage federal, state, local, and private funding to support the need for current and future knowledge-based workers. The State will continue to work closely with its business and industry partners to define and understand their ever-changing needs regarding worker skills. North Carolina works closely with business organizations like the North Carolina Chamber of Commerce, the North Carolina Business Committee for Education (NCBCE), The North Carolina Rural Economic Development Center, and the North Carolina Economic Development Association to ensure that their needs are understood. The State will continue to appoint strong business representatives to the Commission and the State EDB. Additionally, North Carolina will raise its expectations of private sector-led local workforce development boards (WDB) to ensure that private sector appointments reflect the industry makeup of the area, and that the local WDBs have sufficient capacity to fulfill their roles and responsibilities. Governor Easley continues to leverage resources to introduce training and education reforms and opportunities and to build on existing programs that impact both the emerging and incumbent workforce. Examples of these efforts include the following: Early Childhood and Public School Initiatives • The More at Four early childhood initiative is a state-funded effort to work with at risk preschoolers to ensure their readiness for entry into K-12. Funding has been increased for this initiative. Twenty Thousand four year olds are enrolled in the More at Four program with an additional 10,000 to be enrolled by the end of 2007. • The 21st Century Skill Center initiative, recently announced, is a public/private partnership supported by NCBCE and other corporations and businesses, plus the Partnership for 21st Century Skills. The project will focus on preparing students for high-skilled jobs in the new economy. The Center will work with public school systems, community colleges, and university educational institutions to redesign school curricula, update teacher-training 8 of 138 Approved by USDOL June 29, 2007 programs, and provide improved assessments of student skills. Educators, administrators, and the business community will work with the Center to identify the skills needed to ensure that North Carolina continues to compete successfully in the global economy. • The creates early college opportunities in high schools. High school students take college courses at their high school and are able to earn Associate Degrees with just one extra year of study. This not only saves families tuition payments but also gets trained workers out in the labor market at a faster pace. The state plans to have 75 Learn and Earn high school projects by the end of 2009. • The New Schools Project (NSP), launched in August 2003 by the Governor's Education Cabinet and the Public School Forum, is a private/public partnership that focuses leadership and financial resources on change in the State’s high schools. Backed by an $11 million grant from the Bill and Melinda Gates Foundation, this project will award grants and provide other support to create up to one hundred (100) new, small high schools across the State over the next five years. The schools will serve as models for academically rigorous curricula to prepare all students for work and college. The NSP will also seek to engage key stakeholders in shaping consensus for change in the high schools and action steps to get there. Examples of initial projects include the following: • Career Academies -To date, eight school districts (Newton-Conover, Scotland County, Wake County, Winston-Salem/Forsyth County, Asheville City, Cumberland County, Durham Public Schools, and Granville County) have been awarded grants to develop career academies. Each of the grant recipients is committed to creating new high schools and schools-within-existing-schools that focus on career preparation in the health sciences. They will be developed with regional health care and higher education partners. • Middle and Early Colleges - Five districts (Buncombe, Catawba, Guilford, Durham and Nash-Rocky Mount) have received grants to develop Middle and Early Colleges. By bridging the divide between high school and college, Middle and Early Colleges make higher education affordable, attractive, and more accessible. Such schools are located on either community college or university campuses. Upon graduation, students receive a high school diploma and either an Associate Degree or two years of transferable college credits. • High School Reform – To reform high schools and better prepare students for college and the workforce, recent grants from the North Carolina New Schools Project were awarded in three communities in northeast North Carolina, namely, Beaufort, Camden, and Dare. The funds will be spent to create new, smaller high schools that will offer focused learning and will help motivate students to make connections with both their teachers and the world beyond high school. Grant recipients commit to overall reform of their schools to change whatever is necessary to make the high school experience relevant to post-secondary plans and the world beyond high school for all of their students. Incumbent Worker Training • The Incumbent Workforce Development Training Program was designed and implemented in 2003 to promote and support partnerships with the business community to meet their worker training needs. Sponsored by the Commission on Workforce Development and managed through a partnership between the North Carolina Department of Commerce (DOC) and the 24 local Workforce Development Boards (WDBs), the program has invested over $12 million since 2003 to provide over 420 businesses with grants to train their workers. Continuation is planned for the 2007-2009 period. • The New and Expanding Industry Training (NEIT) Program, part of the NCCCS, provides customized training assistance in support of new, full-time production positions created in North Carolina. This kind of customized training assistance enhances the growth 9 of 138 Approved by USDOL June 29, 2007 potential of companies located in North Carolina while simultaneously preparing the State’s workforce with skills that are essential to successful employment in emerging industries. This nationally recognized customized training program is a proven economic development asset for the State, and is closely aligned with the Incumbent Workforce Development Training Program to ensure resource maximization and flexibility in providing enhanced business services. • The Focused Industrial Training (FIT) Program, part of the NCCCS, is a special training program for North Carolina's traditional industries. Serving a customer base composed primarily of manufacturing clients, FIT uses individual needs assessments and consultants to design and implement targeted, customized training for organizations that need to upgrade workers' skills because of technological or process advances. The program focuses on skill requirements that change as technology changes. • The Career Readiness Certificate Initiative (CRC) is a portable credential that promotes career development and skill attainment for the individual, and confirms to employers that the individual possesses the basic workplace skills of reading, applied math, and information locating. This certificate is an especially useful economic development tool in cities and counties where the academic achievement levels of the incumbent, dislocated, or potential workforce are inhibitors to business development. As a result of the testing, individuals earn a CRC or identify areas in which they need further training in order to earn a CRC. JobLink Career Centers will partner with North Carolina’s Community College system to make sure that training and education opportunities are available to meet targeted training needs. There are currently 34 CRC sites around the state with statewide rollout expected to be completed in 2008. Targeted Worker Populations • The Advisory Council on Hispanic/Latino Affairs, appointed by the Governor, focuses on issues affecting the Hispanic population in North Carolina. It has three major duties: 1) to advise the Governor on matters concerning the Hispanic community; 2) to establish a forum for the Hispanic community; 3) and to see that Hispanics are represented in all facets of government. Workforce development is a major issue with this population group; therefore, Commission staff attends the meetings, assisting with these types of issues. • The Office of Hispanic/Latino Initiatives is a community college-based initiative designed to assist the Hispanic/Latino youth population with successful entry and advancement in the workforce. Specific goals include accelerating the training and learning process of Hispanics and building on the strengths of the emerging population for the betterment of North Carolina’s workforce. • The Action Agenda to Aid North Carolina’s Dislocated Workers, a plan developed by the North Carolina Rural Economic Development Center, has both short- and long-term strategies to assist the thousands of North Carolinians who have been or will be impacted by job loss, either by business closings or by layoffs. The North Carolina Rural Economic Development Center, in partnership with Governor Easley’s cabinet agencies and other stakeholders, developed the Action Agenda (Appendix 2). The State Board will work closely with state agencies, federal agency partners, and local communities to implement measures that will assist workers and communities. A task force, under the auspices of the State Board’s policy and research committee has developed implementation strategies drawn from the Action Agenda. Implementation strategies implemented to date include the purchase of a Mobile JobLink Vehicle that will be used to provide on-site assistance to companies and their workers facing impending layoffs, the development of public awareness tools to ensure business and workers are aware of the resources and services available to them, and process strategies that link existing businesses who need workers to workers who will experience layoffs in local communities. • The Going Home Initiative is a collaboration of the Department of Corrections (DOC), and the JobLink Career Center system. Initially supported by a grant from the US Department of Justice, and leveraged with state activities funds from the Workforce Investment Act (WIA) 10 of 138 Approved by USDOL June 29, 2007 of 1998, this project works with soon-to-be-released inmates from North Carolina’s correctional institutions to assist in their transitions back into the communities and to employment. Market-Driven Demonstration Projects • Project Health is a demonstration project that began with a grant from the US Department of Labor (USDOL) high-growth initiative and leveraged with Workforce Investment Act (WIA) statewide activities reserve funds. This demonstration project is a collaboration between the State Board, the NCCCS, the North Carolina Hospital Association, and the public university system (UNC system). By increasing the number of qualified nursing instructors in the community colleges, this project addresses the shortage of registered nurses in North Carolina. While the federal project concluded at the end of 2006, learning’s are still being applied. The project supported 24 nurses to attain Master of Science degrees in nursing. These nurses became credentialed to teach in our community college system. For every additional qualified nursing instructor, 12-15 more students can be enrolled in nursing programs in our community colleges. Learning from this effort continues to pay dividends in the State. • The Retail Training Center is a collaboration between the Commission, the Central Piedmont Workforce Development Board, the National Retail Federation, and Northgate Associates (a retail shopping center owner). This training center was developed in response to the need for qualified workers by the retail industry. The training center works with retail companies to train new and incumbent workers in customer service, sales, and management skills. Between 2004 and 2006 the Center served 594 individuals with a placement rate of 74% in retail establishments. Over 50 participants received national professional certification in customer service by the National Retail Federation. Millennium Campuses The Millennial Campus Act makes it possible for any institution in the University of North Carolina system to develop facilities that encourage university/government/industry collaborations in research and development. These facilities capitalize on North Carolina’s considerable research strengths in areas such as biotechnology, education, information sciences, and microelectronics. Governor Easley envisions a transformation of existing policies and programs so that they are more adaptable to the local labor markets around the State. He expects the North Carolina workforce development system to clearly define the customer base that it serves and the processes it uses to serve workers and businesses through the forging and strengthening of partnerships, and to continue building the capacity to do so. North Carolina will continue to organize multiple partners and funding streams around common goals, bringing together businesses, workers, educational institutions, social service agencies, and other partners to design and implement policies and programs that improve labor market outcomes. North Carolina will take advantage of the broad representation of public and private interest on the state, regional, and local boards and associations to improve its understanding of labor market conditions, needs, and strategies. 11 of 138 Approved by USDOL June 29, 2007 The outcome of developing broad collaborations and partnerships at the state and local levels will be multi-faceted: • Broader opportunities for workers to be employed in jobs that offer opportunities for financial stability, • Higher level of business efficiency and productivity, and • Enhanced regional and local economies. The Commission on Workforce Development will launch two initiatives in 2007 that will support efforts toward transforming our system to meet labor market demands: In the fall of 2006, North Carolina was chosen as one of five states to become a participant in the National Governor’s Association’s (NGA) Policy Academy on Sector Strategies. The challenges faced by our education, workforce development, and economic development infrastructure compel our state to target sectors with the greatest potential for sustainable growth. As part of the NGA initiative, a team of state, local, and industry partners are developing action plans to define how the state will provide guidance, capacity building assistance, and funding support to build regionally based sector alliances throughout the state. WIA funding will support an initial competitive grant program for developing sector strategies in the allied health industry. This grant program is targeted for the summer of 2007. The Governor and the Commission on Workforce Development are committed to the development of sector initiatives that include substantial employer engagement, deep community connections, career advancement opportunities, integrated service delivery and support, industry driven education and training, and connected regionally based networks. The Commission has focused its work beginning in 2005 on building local workforce development board capacity. This has included developing local board standards, supporting local board access to expanded data and information sources, and developing staff development methods for local board staff. North Carolina understands the importance of workforce boards expanding their focus, program design, and resource utilization to support a more regionally based approach to workforce investment planning, governance and leadership. The Commission will implement strategies and incentive measures beginning in the spring of 2007 to support local boards’ transformation to regionally focused entities that drive strategic partnerships and alignments. Governor Easley’s plan for North Carolina, the One North Carolina Agenda, is a comprehensive, overarching, inclusive plan to make the State a place “Where every citizen has a chance to play in the winner’s circle of our economy” (Governor Easley). This comprehensive Agenda includes a clear vision for developing North Carolina’s youth: • Build a system of education that gives every child every opportunity to succeed, regardless of geographic location or economic condition. • Implement the More at Four pre-kindergarten program to help at-risk four-year olds start school at grade level, ready to learn. • Recruit and retain the highest quality educators. 12 of 138 Approved by USDOL June 29, 2007 • Develop a workforce prepared to meet the demands of a global economy by expanding life-long learning opportunities. • Enrich students with character education and with knowledge, and keep parents informed, empowered, and involved with school accountability report cards. During the 2007-2009 State Plan period the One North Carolina Agenda is committed to education building a skilled workforce by: • Expanding More at Four, a statewide pre-Kindergarten program for at-risk four-year-olds. With proceeds from the N.C. Education Lottery, this program will serve 40,000 children. • Providing a 9.6 percent increase for education above 2005-06 levels, including teacher salary increases and bonuses, in addition to an anticipated $425 million in N.C. Education Lottery revenues. • Demonstrating results from investing in education: Fourth graders performed above the national average in reading, behind only three states in writing and only five states in math. North Carolina SAT scores reached a new state high in 2005, increasing to an average score of 1010, twice the average national gain. • Continuing aggressive high school reform efforts by expanding the number of Learn and Earn high schools that allow students to obtain a high school diploma and an associate’s degree or two years of university credit in five years, and increasing the number of economic development-themed schools through the New Schools Project. By 2008, both these programs will be available to students in every county. • Implementing a plan to increase teacher salaries beyond the national average by 2008 while also raising the starting salary. • Expanding teacher-training opportunities through the community college system, providing scholarships to prospective teachers and providing more professional development for teachers and principals. • Placing 100 literacy coaches in middle schools across the state to train faculty to teach 21st Century skills. • Establishing the nation’s first 21st Century Skills Center to provide teachers with tools to more effectively teach students critical learning skills. • Increasing access to a higher education for all North Carolinians by fully funding enrollment growth and need-based financial aid at the University of North Carolina campuses. • Providing a 15.8 percent increase in funding for community colleges above 2005-06 levels which includes funds for salary increases for faculty and staff, new equipment, distance learning programs and financial aid. In addition, having a skilled workforce requires a vibrant economic community. The One North Carolina agenda establishes an aggressive strategy for job creation and economic growth. Results include: • Regularly ranking in the top for business climate. No. 1 ranking for business climate for four out of the past five years and 2005 Competitiveness Award from Site Selection magazine. “State of the Year” designation in 2005 and 2006 according to Southern Business & Development magazine. • Using smart, targeted, performance-based incentives. Through the One North Carolina Fund, the state has secured more than 19,000 new jobs and $3 billion in corporate investment since 2001. The state has also announced the award of 41 Job Development Investment Grants (JDIG) since 2003. The program has helped secure more than 14,000 jobs and more than $2 billion in investment. 13 of 138 Approved by USDOL June 29, 2007 • Maintaining No. 3 national ranking in biotechnology for the second straight year, according to Ernst & Young’s survey of the industry. • Capping the state gas tax to its current level to reduce burdensome fuel costs for consumers and businesses. • Increasing the minimum wage from $5.15 to $6.15 an hour. Governor Easley’s vision for North Carolina is to have a workforce prepared to meet the skill demands of its economic development strategy for recruitment and expansion of knowledge-based, high-wage jobs in the State. The One North Carolina Agenda is a call to the business community to support education and training of their employees. It is a call to current and future workers to seek and to acquire the education and training they will need to be productive members of the State’s workforce. More specifically, it is a call to the public workforce development system and its partners to meet the needs of North Carolina’s employers and citizens. The State’s workforce development system will focus on the following workforce investment priorities: 1. Build workers’ skills to match current and future workforce skills needs. North Carolina must continue to close the gap between the needs of employers for skilled workers and the supply of North Carolinians prepared to meet this need. This workforce investment priority will require continued support and funding for the State’s education and training system including public schools, community colleges, and universities. These institutions will require capacity to provide high quality workforce education and training that is responsive to business needs in order to create and sustain a pipeline of skilled citizens ready to work productively. 2. Target resources and services to workers who need transition assistance so that they may be prepared for and benefit from North Carolina’s changing economy and job opportunities. This workforce investment priority will require the following: • Expansion of incumbent worker training opportunities for businesses and their employees to increase worker productivity and to avert worker dislocations. • A comprehensive strategy for dislocated worker transition assistance to training, support services, and reemployment. • Targeting services and resources to new and existing worker pools that may require special education, training, and support services. These worker pools include disadvantaged youth (including youth dropouts), the (increasing) immigrant population, new labor market entrants, and low-wage workers. 3. Continue to build the unified public workforce development system (JobLink) to improve services to businesses and workers, and to impact North Carolina’s current and future economic growth. This workforce investment priority will require the following: • Expansion of the level of service integration among public workforce development agencies to improve services to business and industry. • Creative use of multiple funding streams and other funding sources to leverage and maximize services to workers and employers. • Marketing and communication strategies that effectively inform workers and employers of the services and benefits available to them. • A management and accountability structure within the unified system of multiple agency partners. 14 of 138 Approved by USDOL June 29, 2007 The Commission on Workforce Development, in partnership with state and regional partners will support the priorities above by focusing its work in five strategic areas over the next two years (2007-2009). These areas include: 1. Building strategic partnerships at the state and regional levels to leverage resources and assets. The State Board will continue to emphasize local board capacity building and increased service integration of the JobLink service delivery system in order to drive stronger alignments with economic development, and business and industry. 2. Redirecting system resources and assets to target limited investments to support areas of greater impact. 3. Using good data and information to more effectively develop policy, design programs, and utilize resources. 4. Building the workforce investment delivery system in a way that is easily recognizable and accessible to business and industry, workers, and other system customers. 5. Building regionally based alignments and collaborations that ensure broader cooperation in real labor markets. See Appendix 16. . The State Board (NC Commission on Workforce Development) is housed in the NC Department of Commerce, which is also responsible for the state level economic development divisions. The Commission, through its staff, provides collaboration in bringing together the expertise of public workforce development partners with the economic development community. Additionally, leaders from each of the public workforce agencies serve on the Commission. Through this state level collaboration, local workforce development partners receive assistance in aligning economic development efforts. Both the structure and organization of the State Board (NC Commission on Workforce Development) are set forth in North Carolina General Statute 143.B-438.10. The Board has 38 voting members, 32 of which are appointed by the Governor. The remaining six serve by virtue of their offices as agency heads. The Governor appoints the State Board chair from amongst the business and industry members. The Secretary of DOC (or his designee) serves as secretary to the State Board. Members are appointed to four-year terms, and serve at the pleasure of the Governor. The Chairperson has the authority to appoint committees and committee chairpersons. The Chairperson and those serving as committee chairpersons constitute the Executive Committee. The Executive Committee has the authority to act in the name of the full State Board as 15 of 138 Approved by USDOL June 29, 2007 required, between meetings. All Executive Committee actions reflecting policy decision(s) are subject to ratification by the full State Board. In addition to the Executive Committee, there are 4 standing committees. See text below. See text below. The State Board’s 38 members are appointed as follows: • By virtue of their offices, the following department and agency heads or their designees serve on the State Board: the Secretary of DHHS, the Chair of ESC, the Superintendent of Public Instruction, the President of NCCCS, the Commissioner of DOL, and the Secretary of DOC. • The Governor appoints 32 members as follows: • Six members representing public, postsecondary, and vocational education; • Two members representing community-based organizations; • Six members representing labor; and • Eighteen members representing business and industry. The identification of potential State Board members is the ultimate responsibility of the Governor, as administered by the State Office of Boards and Commissions. Recommendations for the 32 members appointed by the Governor are received in several ways. Organized labor is asked to make recommendations for the six members representing labor. Of the six members representing education, one serves by virtue of his/her position as president of the State Community Colleges Presidents’ Association. Recommendations for vocational education are normally received from the State Director for Carl D. Perkins Secondary Education Programs and the representatives must have experience with respect to youth activities. Any state agency or community-based organization may make recommendations for the two members who represent community-based organizations. Any group or individual may make recommendations for private sector appointments of persons who have an interest in North Carolina’s workforce development system. Representatives from key industry sectors (as identified by the Policy and Research Section, North Carolina DOC) are recruited to assure that the Board’s membership reflects a true picture of North Carolina, from both an economic development and a geographic perspective. The State Office of Boards and Commissions receives all recommendations but the final decision remains with the Governor. Eighteen members of the Commission must represent business and industry. North Carolina has made a concerted effort to assure that business leaders appointed to the Commission have both hiring authority as well as an understanding of the workforce development system. To 16 of 138 Approved by USDOL June 29, 2007 assure that ties with economic development are maintained and strengthened, members who represent the major employment sectors as well as regional economic development leaders are encouraged for Commission membership See text below. See text below. See text below. North Carolina General Statute assigns all functions required in 111(d) and 20 CFR 661.205. Board functions are defined in the General Statue to be as follows: 143B-438.12. Federal Program Administration (a) Federal Workforce Investment Act. – In accordance with the federal Workforce Investment Act, the Commission on Workforce Development shall develop a Five-Year Strategic Plan to be submitted to the U.S. Secretary of Labor. The Strategic Plan shall describe the workforce development activities to be undertaken in the State to implement the federal Workforce Investment Act and how special populations shall be served. (b) Other Workforce Grant Applications. – The Commission on Workforce Development may submit grant applications for workforce development initiatives and may manage the initiatives and demonstration projects. (1999-237, s. 16.15(b)). In addition to the functions described above, the Commission (State Board) also:1) reviews annually the measures taken by the State Board of Education concerning section 113(b)(14) of the Carl D. Perkins Vocational and Applied Technology Education Act, 2) designates Local Areas, and 3) reviews developments related to the statewide employment statistics system provided through Wagner-Peyser. A calendar is published annually of all meetings of the Commission. Meeting dates and locations are broadcast to the public via email distribution lists and via the DOC Web site. All meetings are held in a public location with handicapped access for people with disabilities. A public gallery is available to accommodate public attendees. 17 of 138 Approved by USDOL June 29, 2007 General information related to the Commission is available to the public at www.nccommerce.com/workforce. This Web site information explains the various functions of the Commission and lists its members. For those wishing to be added to the distribution list for meeting agenda and minutes, contact information is also available. A sign up sheet for same is available at each Commission meeting. Circumstances which constitute a conflict of interest are defined as any vote on matters (policy, procedure, grant or award) which has a direct bearing on services to be provided by that member or by an immediate family member, any organization which such member or an immediate family member directly or indirectly represents, any matter which would financially benefit such member or an immediate family member, or any organization such member or an immediate family member represents. (State Bylaws, Article IV, Section 5) Resources for the Commission on Workforce Development include support staff and travel reimbursement. See text below. See text below. The Governor established a state level workforce development management alliance (Alliance). This Alliance is charged with implementing plans, policies, and strategic initiatives that involve multiple agency programs and resources. The Alliance is comprised of leadership from the following state level entities: • Representative from the Office of the Governor, chair of the Alliance • Chairman of the Employment Security Commission • President of the Community College System • Secretary of the Department of Commerce • Secretary of the Department of Health and Human Services The State Economic Development and the Commission on Workforce Development (State Board) endorsed this structure as an effective means of implementing programs and policies that involve multiple agencies and programs, and of establishing clearer lines of communication 18 of 138 Approved by USDOL June 29, 2007 among state and local agencies within the JobLink network. The Alliance is expected to be the program management level line of communication between state and local agencies and the State Board, the State EDB, and the Governor’s office. See additional details concerning the Alliance in Section I of this plan. An additional approach to ensuring accountability, collaboration, and effectiveness of the services provided by workforce programs is a collaborative initiative to develop a new methodology for evaluating North Carolina's workforce development system. The cornerstone of this initiative is the redefining of workforce development as a process based on function rather than funding. To this end, a work group of partner agency representatives and local level staff developed this working definition: North Carolina’s workforce development system is a group of interacting, interrelated, and interdependent elements that strengthen, help to improve, and aid in the growth of people who work, people who are available to work, and the businesses and industries which employ them. Representatives from the following partner agencies are involved in this initiative: the Commission (State Board), the Division of Workforce Development, ESC, NCCCS, DOL, the UNC system, Division of Vocational Rehabilitation (DVR), the North Carolina Department of Public Instruction, the Division of Social Services (part of DHHS), the Division of Services for the Blind (part of DHHS), and the Department of Correction. A resource for establishing priorities and services for youth is a team already in place. Composed of representatives from Juvenile Justice, Community Colleges, WIA programs, and Social Services, this team attended the regional youth forum in Chicago in November 2004. With on-going dialogue and a focus on youth issues, this team plays a vital role in supporting the work of the State. Another team-oriented strategy that North Carolina will continue to use is that of the Local Area Youth Leads Team supported by the 24 Local Workforce Development Boards and Directors. Representing North Carolina’s 24 Youth Councils, this active group meets several times per year to identify strategies for improving coordination and collaboration. Each session is an opportunity for team members to share up-to-date information on best practices, state level updates, and emerging issues. This information-sharing includes input from those who serve youth. For example, Department of Public Instruction staff have met with the group to brief them on high school graduation requirements and dropout policies; additionally, DHHS staff met with the group to discuss opportunities for foster youth under the John Chafee Act. With plans to have Agency representatives continue to play vital parts in these meetings, North Carolina uses this group to help develop and strengthen its business connections. In addition, a Youth Leads listing has been established so that members can quickly and easily discuss questions or issues of the day. A two-day training event established around emerging issues and technical assistance needs to include the attendance of Youth Council Chairs and Workforce Development Board Directors is held annually. At the local level, North Carolina will encourage its Youth Councils to continue their work in developing broader roles within the community — roles beyond that of just WIA employment 19 of 138 Approved by USDOL June 29, 2007 and training — roles that embrace a youth development perspective and take into account a wide range of community issues. These far-reaching issues can have a huge impact on the success of youth, especially those at risk, in the labor market. One example of reaching out is reflected by local area Youth Councils including members from emerging and in-demand occupations. Further, North Carolina will continue to strengthen its expectations for youth professionals. The State supports its youth professionals to become even more knowledgeable about their local economies (current status, future projections, high-growth industries, and career paths); and encourages JobLink Career Center professionals to make connections to specialized youth programs for dropout youth who are using core services and can benefit from the addition of intensive services. As is proposed in the current re-authorization discussion, should Youth Councils (at the discretion of the local WDBs) become optional, North Carolina will work with its WDBs to promote an integrated youth agenda. Accordingly, North Carolina will support local boards that opt to retain their Youth Councils and task them with the broader community role Another resource to guide an integrated vision for serving youth in North Carolina is the NC Youth In Transition Collaborative. The NC Youth In Transition Collaborative (NCCYT) is a group of concerned representatives from public and private agencies who work together to promote successful transitions to adulthood for youth who are or have been served by public agencies. Many of these youth, without adequate supports, could easily become disconnected from opportunities, networks, supports and services that will enable these youth to thrive. The collaborative has established these givens about itself: • “We are all passionate about the youth we serve • No agency or organization alone can serve all youths' needs • There are overlaps and gaps in services • In order to better serve youth, we are here to work together to address the overlaps and gaps (e.g., interagency collaboration) • Focus is on prevention (i.e., we will keep asking ourselves "how can we work together to better support transition-age youth to become self-sufficient, healthy adults?")” Members of this collaborative include NC Administrative Office of the Courts, Communities in School, NC Department of Commerce, Concern of Durham, Greenhouse for Boys and Greenhouse for Girls, NC Department of Health and Human Services, NC Department of Juvenile Justice and Delinquency Prevention, NC Department of Public Instruction, Homeless Program, NC Division of Vocational Rehabilitation Services, Transition Services, Independent Living Resources, Inc, NC Division of Social Services, LINKS, NC Guardian ad Litem Program, North Carolina Community College System, SaySo Inc. (foster care advocates), and the NC Youth Advocacy and Involvement Office. ? During the last half of the 20th century, manufacturing was seen as the traditional source of “good jobs” for most workers in North Carolina. Even as far back as 1990, service-providing 20 of 138 Approved by USDOL June 29, 2007 industries were the dominant employers in the State. In that year, service industries accounted for over two-thirds of the annual average employment. During the last decade of the 20th century, economic fluctuations followed by structural adjustments in the “innovations and technology developments” sector transformed the state economy. These changes resulted in an increase in the dominance of the services sector in North Carolina’s labor market. As of 2006, service-providing industries accounted for almost four-fifths of total non-farm employment in the State. The average (mean) quarterly employment in North Carolina during 2nd quarter of 2006, was 3,956,273; this figure includes workers employed at firms subject to the State’s unemployment insurance (UI) statutes (i.e., “covered” employment). Appendix 3 shows the distribution of employing establishments, quarterly employment, and wages by industry sector. Over half of the State’s workers were employed in one of five industry sectors: Manufacturing (14.0 %), Health Care and Social Assistance (12.8%), Retail Trade (11.4%), and Education Services (9.1%), and Accommodation and Food Services (8.4%). However, the distribution of employing units (i.e., firms) by industry sector is markedly different: only two of the five dominant employing sectors, Retail Trade (13.6%) and Health Care (7.8%), are among the dominant establishment sectors. The other sectors with a majority of the State’s employing units include Construction (11.6%); Professional, Scientific, and Technical Services (9.7%); and Other Services (7.2%). When compared to the nation, the distribution of employers and workers within the State by sector is similar. One striking difference is that, for the United States as a whole, Manufacturing is the third largest sector (13.1%) in terms of employment, while in North Carolina it is the largest sector. Slightly less than half of the total North Carolina wages during 2006, Quarter 2, were paid in five employment sectors which included the State’s dominant sectors, Manufacturing (17.0%), Health Care (13.1%), Education (8.6%), and Retail Trade (7.5%). The fifth dominating sector, in terms of wage share, is Professional and Technical Services (6.4%). Even though only 4.3% of the total labor force works in this sector, it makes up 9.7% of all establishments. Across all industries, the average weekly wage was $690. Employees in Health Care, Education, and Construction industries had average wages close to the state’s average, while those in Retail Trade, Accommodation and Food Services, and Other Services received wages far below the State’s average. In contrast, employees in Manufacturing, Wholesale Trade, and Professional Services made weekly average wages that were at least $150 greater than the all industries’ weekly average. This pattern is similar to that seen when comparing sector wages at the national level. However, the State’s wages are, overall, about 88% of the nation’s; among North Carolina’s dominant sectors, the average weekly wage ratio (NC:US) ranges from .83 for Construction to .93 for Wholesale and Retail Trade. An accurate description of North Carolina’s economic base must consider the significant diversity present within the State. At the finest level of detail (at the six digit NAICS level) there are over 1,000 industry groups representing all the establishments and employers of North Carolina. Close to 500 of these industries report average quarterly employment of 1,000 or more workers. Considerable diversity remains in the State’s industrial mix even when it is narrowed down to high employment establishments. Twenty-eight industries had quarterly average employment of 20,000 or more during 2nd quarter of 2006. This short list includes industries with average weekly pay ranging from $210 (Limited-service restaurants) to $1,335 (Managing offices). These industries also vary in terms of establishment sizes, ranging from relatively small operations with an average of 5 employees (New Single-family housing construction) to those with over 1,000 workers (General Medical and Surgical Hospitals). The diversity of North Carolina’s economic base is also geographic. Appendix 4 gives maps of the State’s 100 counties. The maps are coded by dominant industry sector, with the top map showing the sector that accounts for the largest share of employment in the county during 2006, 21 of 138 Approved by USDOL June 29, 2007 Quarter 2, and bottom map showing the industry sector with the largest share of total wages paid during the same period. The continued significance of manufacturing in North Carolina is clearly seen in more than half the counties. The industrial shifts that took place during the latter half of the 20th century and the early years of the 21st century are expected to continue over the next several years. These changes will continue to impact the State's industrial structure and occupational employment patterns. North Carolina’s industry employment is expected to reach 4.8 million in 2014. This represents an increase of almost 700,000 jobs from employment levels in 2004. North Carolina will continue to experience both growth and dominance within its service providing industries and declines within natural resources and mining, as well as manufacturing industries. The State's Manufacturing super sector will still be a major industrial force but will continue to be impacted by job losses. By 2014, North Carolina's service providing industries will comprise 76% of total employment, goods producing industries are expected to decrease to 17%, while self-employment will continue to comprise about 7% of all employment. More than half of all employment will be concentrated in three service providing super sectors: Education and Health (21%); Trade, Transportation and Utilities (18%); and Professional and Business Services (12%). North Carolina's Goods Producing industries are projected to experience an increase of 4,300 jobs. Employment within the Manufacturing super sector is projected to decline by more than 40,600 jobs. These job losses will continue to be dominated by losses in Textiles; Apparel; Furniture and Related Products; and Beverage and Tobacco Products. However, North Carolina will experience expansion in other Manufacturing sub sectors which will help to offset some of these losses. These growing Manufacturing sub sectors include industries which produce Chemicals; Fabricated Metal Products; Food; Transportation Equipment; Wood Products; Electrical Equipment; and Primary Metal Manufacturing. Within the other Goods Producing industries, North Carolina will experience employment declines in its Natural Resources and Mining super sector due to job losses within the Crop and Animal, Forestry and Logging production industries. Construction industries will continue to grow and add more than 45,400 jobs. This growth will be due to significant expansion within the Specialty Trade Contractors, and moderate expansion within both Heavy and Civil Engineering Construction; and Construction of Buildings. North Carolina's Service Providing industries are expected to expand to over 3.7 million jobs by 2014, an increase of more than 664,300 jobs over 2004 employment levels. Employment growth within the Education and Health Services industries will outpace other industrial super sectors. This super sector is expected to add more than 232,300 jobs and includes several of the State's significant growth industries: Educational Services; Ambulatory Health Care Services; Hospitals; Nursing and Residential Care Facilities; and Social Assistance Industries. The Trade, Transportation and Utilities super sector will add more than 123,100 jobs, with employment growth expected in 22 of the industry's sub sectors. Employment growth within this super sector will be dominated by growth in General Merchandise Stores; Truck Transportation; Merchant Wholesalers of Durable and Non-Durable Goods; Motor Vehicle and Parts Dealers; and Miscellaneous Store Retailers. 22 of 138 Approved by USDOL June 29, 2007 Natural Resources and Mining 16,840 16,360 -480 -0.1 Construction 218,470 263,880 45,410 6.6 Manufacturing 578,710 538,120 -40,590 -5.9 Trade, Transportation, and Utilities 749,160 872,280 123,120 17.8 Information 72,370 83,420 11,050 1.6 Financial Activities 188,060 217,060 29,000 4.2 Professional and Business Services 430,540 567,650 137,110 19.9 Education and Health Services 778,960 1,011,280 232,320 33.6 Leisure and Hospitality 348,930 428,640 79,710 11.5 Other Services (Except Government 155,450 181,560 26,110 3.8 Government 264,000 289,930 25,930 3.8 Over 137,000 jobs are expected to be added to the Professional and Business Services super sector. This includes North Carolina's fastest growing sub sector: Administrative and Support Services, as well as expansion in Professional, Scientific, and Technical Services; and Management of Companies and Enterprises. The State will continue to experience growth in the Leisure and Hospitality super sector, with the addition of 80,000 jobs. This increase will be largely impacted by the continued growth in Accommodation and Food Services. By 2014, the Financial Activities super sector is expected to expand by 29,000 jobs. This will be due to significant growth in Credit Intermediation and Related Activities; Insurance Carriers and Related Activities; and Real Estate. Growth within the Government super sector will be impacted by employment growth in both local and State government. Employment increases within the Other Services super sector will be driven by growth in the Religious, Grant-making, Civic, Professional, and Similar Organizations sub sector. North Carolina's smallest service-providing super sector, Information, will experience job growth due to employment increases within Publishing industries; Internet Service Providers, Web Search Portals, and Data Processing Services. During the last several years, North Carolina's occupational employment patterns have been impacted by changes in both its industrial structure and workforce composition. Over the next several years, these changes will continue to be driven by both occupational growth (new jobs) and replacement needs (turnover), with replacement needs outpacing occupational growth. By 2014, over two-thirds of the State's occupational employment will be concentrated in eight occupational groups: Office and Administrative Support Occupations; Sales and Related Occupations; Production Occupations; Food Preparation and Serving Related Occupations; Transportation and Material Moving Occupations; Education, Training, and Library Occupations; Management Occupations; and Healthcare Practitioners and Technical Occupations. Over the next several years, North Carolina is expected to continue to experience declines within its traditional manufacturing industries and related occupations. At the same time, the State will continue to experience growth within its service providing industries and related occupations. These industrial and occupational shifts will continue to impact North Carolina's economic landscape and its workforce development strategies. 23 of 138 Approved by USDOL June 29, 2007 (Appendices 5 – 10). ? As North Carolina's economy has shifted from goods producing to service providing, demand for skilled workers has been on the rise. Demands for skilled workers span a diverse set of industrial sectors and occupational groupings. In 2004, more than 300 of the State's 712 occupations required at least some postsecondary vocational training. In 2004, the number of skilled jobs was about 1.1 million and is expected to grow to 1.4 million by 2014. Over the next several years, employment growth and replacement needs will drive North Carolina's occupational employment patterns. Several of the State's skilled occupations are expected to increase or maintain employment levels. Ten year projections, spanning the decade between 2004 and 2014, indicate that one third of all job growth will come from employment expansion in 282 skilled occupations. By 2014, 29% of the State's workforce will be employed in skilled occupations. Although these skilled occupations span 18 different occupational groups, more than two-thirds of them are concentrated in six occupational groupings: Office and Administrative Support Occupations; Sales and Related Occupations; Production Occupations; Transportation and Material Moving Occupations; Education, Training, and Library Occupations; Management Occupations; and Healthcare Practitioners and Technical Occupations. Demand for workers in these skilled occupations and related industries are expected to increase over the next several years, thus requiring additional workers with advanced education and training. Through the provision of targeted training programs, North Carolina's workforce development system can serve as the foundation for helping to meet the growing demands for skilled workers. (Appendices 11 – 12). One hundred and sixty occupations are identified as critical to North Carolina’s economy. The “critical list” includes 22 major occupational groups, a diverse group that spans a variety of education/training levels and major occupational groups. Table IV D, below, shows the distribution of critical occupations by major group. With the exception of Farming, Fishing, and Forestry, all of the major groups are represented. This majority representation reflects the current and future diversity of North Carolina’s economy. 24 of 138 Approved by USDOL June 29, 2007 Management 7 Business and Financial Operations 8 Computer and Mathematical 6 Architecture and Engineering 2 Life, Physical, and Social Science 2 Community and Social Service 4 Legal 4 Education, Training, and Library 6 Arts, Design, Entertainment, Sports, and Media 1 Healthcare Practitioners and Technical 10 Healthcare Support 5 Protective Service 6 Food Preparation and Serving 14 Building and Grounds Cleaning and Maintenance 7 Personal Care and Service 6 Sales and Related 11 Office and Administrative Support 20 Farming, Fishing, and Forestry 0 Construction and Extraction 14 Installation, Maintenance, and Repair 9 Production 8 Transportation and Materials Moving 10 160 Occupational groups that are particularly critical to the State include the following: • Office and administrative support, • Healthcare practitioners, technicians, and support, • Food preparation and serving, • Construction and extraction, • Sales and related, and • Transportation and materials moving. The critical occupations within the above six groups encompass a variety of training/education and/or skill needs. In sum, the occupations that are critical to North Carolina's current and future growth reflect the state’s economic diversity and indicate a need for a workforce that can meet the demand for a variety of different types of jobs. Overall, 73 different skill, knowledge, and ability dimensions were important or very important for at least one of the State’s critical occupations. The wide range of dimensions relevant to the performance of job duties for the critical occupations highlights the diversity of the North Carolina labor market and economy, reinforcing the state’s need for a workforce consisting of individuals with varied skills. Many of the level requirements for the critical occupations’ most important worker requirements are in the moderate or high categories, an indication of a current and continuing need for workers with investments in education and training. Despite the high level of variation in the skill, knowledge, and ability requirements of the State’s critical occupations, some commonalities are apparent. First, skills, knowledge, and abilities related to Communication are required for almost all of the critical occupations; 133 of the 160 25 of 138 Approved by USDOL June 29, 2007 critical occupations had ratings of important or very important for at least one dimension grouped in this type. Within the Communication group, dimensions related to oral communication are the most common, followed by reading, and then by writing. The second most common type of skill, knowledge, and ability dimensions required by the State’s critical occupations is Interpersonal; 112 of the 160 critical occupations had ratings of important or very important for at least one dimension grouped in this type. The most commonly required dimension is Customer Service, followed by the dimension related to Teaching and Learning. Close behind the Interpersonal type in prevalence were the dimension in the Process and Problem-Solving group, where 61% of the critical occupations had an important or very important requirement. Within this type, the emphasis, for the critical occupations, is on dimension related to Problem Solving (i.e., Critical Thinking, Judgment, and Decision-Making). Significant portions of the critical occupations have requirements in the other types as well. More than half of these occupations have an important or very important rating for at least one dimension within the Business, Management, and Production group while exactly half have this importance rating for dimension within the Mathematics and Science group. More than two-fifths of the critical occupations require at least one of the dimension within the Technology Use, Maintenance, and Design group, with an emphasis on use and maintenance of technology rather than design. Finally, 73 of the critical occupations have at least one requirement for a Specialty Knowledge. (Appendix 13). ? North Carolina’s current working age population, ages16 to 64, is estimated to be 5.9 million. It is projected to grow approximately 10% to nearly 6.5 million by the year 2014. This projected growth (see Table IV F, below) will provide a potential 612,073 additional workforce members, 39% of which are of prime working ages, 25 to 54 years old. North Carolina is also likely to see an increase of both older and younger workers. Age 2006 Population Estimates* 2014 Population Projections* Net Change Expected Growth Rate 16-24 1,159,598 1,294,242 134,644 12% 25-54 3,776,213 4,015,961 239,748 6% 55-64 942,014 1,179,695 237,681 25% Total 5,877,825 6,489,898 612,073 10% *Source: North Carolina State Demographer available at http://demog.state.nc.us The actual number of workers in 2014 will depend on future labor force participation rates, which in turn depend on a myriad of factors such as economic and cultural conditions. Applying current labor force participation rates to the above population growth projections provides an estimate of the workforce in 20142. See Table IV FF. This estimate is presented with the caveat that future participation rates will likely not be the same as they are in 2006. For example, participation rates of older workers may change depending on public perception of the stability of Social Security. In an attempt to produce a more robust estimate of the future workforce, labor force participation rates were calculated for North Carolina for the most recent year available, 2006. 26 of 138 Approved by USDOL June 29, 2007 Age 2014 Population Projections1 2006 Labor Force2 2006 Labor Force Participation Rate2 Estimated Workforce 2014 Net Change 16-24 1,294,242 715,472 61.7% 798,547 83,075 25-54 4,015,961 3,145,585 83.3% 3,345,295 199,710 55-64 1,179,695 559,556 59.4% 700,738 141,182 Total 6,489,898 4,420,613 74.6% 4,844,580 423,967 1 North Carolina State Demographer available at http://demog.state.nc.us 2 As reported by the American Community Survey It is estimated that 424,000 workers will be added to North Carolina’s workforce by 2014, and that the total workforce between the ages of 16 and 64 will increase to just under 5 million – 3.3 million of prime working age. The number of both younger and older workers will increase by 224,000. The numbers of older workers are projected to increase by roughly 25%. ? North Carolina is one of the fastest growing states, according to the Census Bureau’s special report, “Cumulative Estimates of Population Change for the United States, Regions, States and Puerto Rico and Region and State Rankings: April 1, 2000 to July 1, 2006”3, and was sixth in the nation in terms of net growth. Nearly 500,000 working age people were added to North Carolina’s population between 2000 and 2006 (see Table IV G, below). North Carolina has experienced population growth rates above the national average throughout the 1990s and early 2000s as well as consistently large positive annual net migration rates4; therefore it is projected that this trend will continue. Available at http://www.census.gov/. 4 See graphs of population growth rates and migration rates under State Highlights at http://demog.state.nc.us/. 27 of 138 Approved by USDOL June 29, 2007 299,398,4 84 281,424,60 2 17,973,88 2 6.4 (X) (X) (X) (X) 54,741,35 3 53,594,78 4 1,146,56 9 2.1 4 4 4 4 66,217,73 6 64,395,19 4 1,822,54 2 2.8 3 2 3 3 109,083,7 52 100,235,8 46 8,847,90 6 8.8 1 1 1 2 69,355,64 3 63,198,77 8 6,156,86 5 9.7 2 3 2 1 .Alabama 4,599,030 4,447,351 151,679 3.4 23 23 27 34 .Alaska 670,053 626,931 43,122 6.9 47 48 42 17 .Arizona 6,166,318 5,130,632 1,035,68 6 20.2 16 20 5 2 .Arkansas 2,810,872 2,673,398 137,474 5.1 32 33 28 22 .California 36,457,54 9 33,871,65 3 2,585,89 6 7.6 1 1 2 15 .Colorado 4,753,377 4,302,015 451,362 10.5 22 24 10 8 .Connecticut 3,504,809 3,405,602 99,207 2.9 29 29 32 37 .Delaware 853,476 783,600 69,876 8.9 45 45 37 10 .District of Columbia 581,530 572,059 9,471 1.7 50 50 49 44 .Florida 18,089,88 8 15,982,82 4 2,107,06 4 13.2 4 4 3 6 .Georgia 9,363,941 8,186,816 1,177,12 5 14.4 9 10 4 3 .Hawaii 1,285,498 1,211,537 73,961 6.1 42 42 36 20 .Idaho 1,466,465 1,293,956 172,509 13.3 39 39 23 5 .Illinois 12,831,97 0 12,419,64 7 412,323 3.3 5 5 11 36 .Indiana 6,313,520 6,080,517 233,003 3.8 15 14 21 28 .Iowa 2,982,085 2,926,382 55,703 1.9 30 30 40 41 .Kansas 2,764,075 2,688,824 75,251 2.8 33 32 35 38 .Kentucky 4,206,074 4,042,285 163,789 4.1 26 25 24 27 .Louisiana 4,287,768 4,468,958 -181,190 -4.1 25 22 51 51 .Maine 1,321,574 1,274,923 46,651 3.7 40 40 41 31 .Maryland 5,615,727 5,296,506 319,221 6.0 19 19 14 21 .Massachusett s 6,437,193 6,349,105 88,088 1.4 13 13 33 46 .Michigan 10,095,64 3 9,938,480 157,163 1.6 8 8 26 45 .Minnesota 5,167,101 4,919,492 247,609 5.0 21 21 19 23 .Mississippi 2,910,540 2,844,656 65,884 2.3 31 31 38 40 .Missouri 5,842,713 5,596,683 246,030 4.4 18 17 20 25 .Montana 944,632 902,195 42,437 4.7 44 44 43 24 .Nebraska 1,768,331 1,711,265 57,066 3.3 38 38 39 35 .Nevada 2,495,529 1,998,257 497,272 24.9 35 35 9 1 .New Hampshire 1,314,895 1,235,786 79,109 6.4 41 41 34 18 28 of 138 Approved by USDOL June 29, 2007 .New Jersey 8,724,560 8,414,347 310,213 3.7 11 9 16 30 .New Mexico 1,954,599 1,819,046 135,553 7.5 36 36 29 16 .New York 19,306,18 3 18,976,82 1 329,362 1.7 3 3 13 43 .North Carolina 8,856,505 8,046,491 810,014 10.1 10 11 6 9 .North Dakota 635,867 642,200 -6,333 -1.0 48 47 50 50 .Ohio 11,478,00 6 11,353,14 5 124,861 1.1 7 7 31 48 .Oklahoma 3,579,212 3,450,654 128,558 3.7 28 27 30 29 .Oregon 3,700,758 3,421,436 279,322 8.2 27 28 18 12 .Pennsylvania 12,440,62 1 12,281,05 4 159,567 1.3 6 6 25 47 .Rhode Island 1,067,610 1,048,319 19,291 1.8 43 43 46 42 .South Carolina 4,321,249 4,011,816 309,433 7.7 24 26 17 14 .South Dakota 781,919 754,844 27,075 3.6 46 46 44 33 .Tennessee 6,038,803 5,689,262 349,541 6.1 17 16 12 19 .Texas 23,507,78 3 20,851,79 0 2,655,99 3 12.7 2 2 1 7 .Utah 2,550,063 2,233,198 316,865 14.2 34 34 15 4 .Vermont 623,908 608,827 15,081 2.5 49 49 47 39 .Virginia 7,642,884 7,079,030 563,854 8.0 12 12 7 13 .Washington 6,395,798 5,894,140 501,658 8.5 14 15 8 11 .West Virginia 1,818,470 1,808,350 10,120 0.6 37 37 48 49 .Wisconsin 5,556,506 5,363,715 192,791 3.6 20 18 22 32 .Wyoming 515,004 493,782 21,222 4.3 51 51 45 26 3,927,776 3,808,603 119,173 3.1 (X) (X) (X) (X) Note: The April 1, 2000 Population Estimates base reflects changes to the Census 2000 population from the Count Question Resolution program and geographic program revisions. (X) Not applicable. See Geographic Terms and Definitions at http://www.census.gov/popest/geographic/ for a list of the states that are included in each region. Table IV G: Cumulative Estimates of Population Change for the United States, Regions, States and Puerto Rico and Region and State Rankings: April 1, 2000 to July 1, 2006 (NST-EST2006-02) Source: Population Division, U.S. Census Bureau Release Date: December 22, 2006 As a result of migration, North Carolina’s labor pool is becoming more diverse (Appendix 14). The net migration rates are positive for each of the workforce age categories when broken out by race, meaning that more people of all ages and races are moving into North Carolina than are moving out. Migration increases the diversity of North Carolina as more people of color move in and stay. For example, nearly 20% of people of current Hispanic and “Other/Multiple Races” can be accounted for by net migration, as well as 7.9% of the current Asian/Pacific Islander population. In 2005, the Hispanic population accounted for nearly 5% of North Carolina’s total working age population, up from 1.4% in 1995. While a smaller portion of Hispanics live in North Carolina (5.6% of the total population) relative to the nation as a whole (13.8%), the presence of this population is a relatively new phenomenon that presents challenges to the State’s education and training systems in addressing the language barriers. The educational levels and occupations of migrants are presented in Table IV GG, below. The net migration rates are positive for each of the educational categories and occupations, meaning that more people of all educational levels and occupations are moving in than are moving out. It appears that North Carolina has benefited from the migration, with increases in the numbers of college educated in the available labor pool, and increased numbers of people working in Professional and related occupations. 29 of 138 Approved by USDOL June 29, 2007 Less than High School 182,289 155,526 26,763 High School 216,255 118,852 97,403 Some College/Associate Degree 283,185 158,341 124,844 Bachelor's Degree or higher 272,352 167,403 104,949 Management, business and financial operations 102,558 65,875 36,683 Professional and related 175,094 99,432 75,662 Healthcare support 13,849 7,644 6,205 Protective support 11,876 10,293 1,583 Food preparation and serving 48,295 21,591 26,704 Building and grounds cleaning and maintenance 22,939 9,239 13,700 Personal care and service 18,861 10,799 8,062 Sales and related 86,556 51,648 34,908 Office and administrative support 107,606 61,173 46,433 Farming, fishing, and forestry 7,826 2,323 5,503 Construction and extraction 56,739 19,672 37,067 Installation, maintenance and repair 37,005 16,955 20,050 Production 71,006 27,208 43,798 Transportation and Materials Moving 41,115 23,545 17,570 Military-Specific 34,093 12,868 21,225 Source: 2000 Decennial Census, 5% Public Use Micro-Sample The skill needs of jobs in the current and future labor market are varied in type, but similar in terms of requiring moderate or high levels of the necessary skills, knowledge, and abilities. Skills are defined as the ability to produce solutions. In order to identify skills gaps in the North Carolina labor market in the next decade, occupations are analyzed using the Occupational Information Network (O*NET). O*NET divides skills into six groups: basic skills ( developed capacities that facilitate learning or the more rapid acquisition of knowledge), complex problems solving skills (developed capacities used to solve novel, ill-defined problems in complex, real-world settings), resource management skills (developed capacities used to allocate resources efficiently), social skills (developed capacities used to work with people to achieve goals), system skills (devolved capacities used to understand, monitor, and improve socio-technical systems), and technical skills (developed capacities used to design, set-up, operate, and correct malfunctions involving application of machines or technological systems). 30 of 138 Approved by USDOL June 29, 2007 Reading Comprehension 100.0 Basic Active Listening 97.1 Basic Speaking 94.3 Basic Writing 91.4 Basic Critical Thinking 88.6 Basic Active Learning 85.7 Basic Instructing 82.9 Social Learning Strategies 80.0 Basic Monitoring 77.1 Basic Coordination 74.3 Social As shown in the preceding table (Table IV H) most jobs in North Carolina require basic skills. Of the ten skills that are projected to be in the greatest demand over the next decade, eight of them belong to the basic skills group. The remaining two, Instructing and Coordination belong to the social skills group. Skill gaps change as the education and training requirements change. Occupations that require post secondary vocational training mostly have a similar major skill gap as the general population. However, time management and social perceptiveness, become more important and critical thinking and instructing others decreases. Generally speaking, the higher the level of education the greater the need for critical thinking and active listening. Regardless of training, most jobs in North Carolina require reading, writing, speaking, active listening and critical thinking. Knowledge is a learned set of facts and principles that are required by many different occupations. Across the state, high levels of specific knowledge such as Customer and Personal Services; English Language; Education and Training; Mathematics; and Psychology will continue to be in high demand over the next decade (Table IV HH) Customer and Personal Service 100.0 English Language 97.0 Education and Training 93.9 Mathematics 90.9 Psychology 87.9 Sales and Marketing 84.8 Clerical 81.8 Administration and Management 78.8 Computers and Electronics 75.8 Medicine and Dentistry 72.7 Mechanical 69.7 Therapy and Counseling 66.7 Economics and Accounting 63.6 Design 60.6 Law, Government and Jurisprudence 57.6 31 of 138 Approved by USDOL June 29, 2007 Occupations that require less than a year of on-the-job training, work experience in a related occupation, vocational training, or an Associate’s Degree are expected to experience a greater need for knowledge in Customer and Personal Service. Occupations that need longer term on-the- job training, or work experience in a related occupation are also predicted to need more knowledge in Sales and Marketing, Clerical, and the English Language. In the Building and Construction occupations, a major skills gap will exist in Mechanical, Customer and Personal Service knowledge. With the growth in Health Care and Educational Services occupations, many of which require an Associate’s Degree, there will be a large knowledge gap in Psychology, Medicine and Dentistry, English Language, Clerical, Computers and Electronics, and Education and Training. It is predicted that there will be an increased need for more people trained in Education and Training techniques for those occupations that require a Bachelor's Degree, a Master's Degree, or a Doctoral Degree. Occupations that demand Bachelor's or higher degrees, plus work experience, will show a growing gap in Administration and Management, and English Language knowledge. Among the areas of technical knowledge that require a Bachelors Degree or higher will be Chemistry, Computers and Electronics, Customer and Personal Service, Education and Training, English Language, Mathematics, Medicine and Dentistry, Psychology, and Therapy and Counseling. Skills and knowledge requirements are worker characteristics, where as work activities involve occupational characteristics. O*NET identifies generalized work activities (GWA) which summarize tasks that may be performed within a group of occupations. In general, future jobs will require people to have the ability to work with others, communicate and adapt to changing situations. The following table (Table IV HHH) reports what is projected to be the most common GWA’s. Establishing and maintaining interpersonal relationships 100.0 Getting information needed to do the job 97.6 Communicating with supervisors, peers or subordinates 95.1 Updating and using job-relevant knowledge 92.7 Organizing, planning and prioritizing work. 90.2 Identifying objects, actions, and events 87.8 Making decisions and solving problems 85.4 Monitoring processes, materials or surroundings 82.9 Working directly with the public 80.5 Handling and moving objects 78.0 Processing information 75.6 Assisting and caring for others 73.2 Communicating with persons outside the organizations 70.7 Performing general physical activities 68.3 Resolving conflicts and negotiating with others 65.9 See text below. 32 of 138 Approved by USDOL June 29, 2007 These are critical workforce development issues in North Carolina: • Skill gaps between North Carolina’s current workforce versus current and future workforce needs in the business and industrial base; • Adequate funding and support of the State’s education and training infrastructure — funding sufficient to meet current and future demands for workers with requisite skills; • Education, training, and related needs of critical North Carolina labor pools, including dislocated workers, low skilled immigrant workers, older youth, high school dropouts, low-wage workers, and low-skilled incumbent workers; • Impending baby-boom retirements and the potential skill gaps resulting from retirements; and • The fast, efficient ability of the State’s public workforce development system to improve and to change in order to meet rapidly evolving community workforce and economic needs. North Carolina will continue to grow and improve its JobLink Career Center system as the primary method of forging broad-based partnerships in its workforce development system. The NC Commission on Workforce Development (State Board) has a certification methodology for the JobLink system that includes standards and funding incentives from Title I (funding) for Joblink Career Centers to build and expand their services to customers, and to expand partnerships within their communities. The Commission has established standards for local Workforce Development Boards scheduled to take effect July 1, 2007. These standards include expectations for establishing stronger alignments with business and industry, providing good labor market information to business and industry, implementing regional collaborative strategies, effective and efficient use of resources, and ensuring that the local JobLink system and its multiple agencies and programs are providing services that are responsive to the needs of workers and employers. North Carolina uses WIA Title I funds to leverage Trade Adjustment Assistance (TAA) and WIA National Emergency Grant (NEG) funds to expand capacity and services to dislocated workers. The State will continue to use WIA Title I statewide activities funds to provide incentives for system expansion and improvement, to expand capacity to serve the business community, to support demonstration projects and test service innovations, and to leverage other state and local level funding for workforce development activities. This leveraging will include supporting activities that include partnerships with faith-based, community-based, and non-profit organizations. By the summer of 2007, the Commission will use WIA Title 1 statewide activities funds to initiate competitive grant programs that will incent and support movement to regionally based planning and resource utilization by local Workforce Boards, and to incent and support the implementation of regionally based sector strategies that are responsive to the needs of high growth occupations. 33 of 138 Approved by USDOL June 29, 2007 North Carolina recognizes that transforming its workforce investment system at the state and local levels to one that is demand-driven, cost efficient with limited duplication, and seamless for workers and employers will require a state level governance, accountability, and management structure that is clearly defined with a strong communication and operational alignment. In Section I B, the State described the Governor’s establishment of the Workforce Alliance. The Alliance will strengthen the State’s ability to implement policy and plans, to make decisions that involve multiple agencies and programs, and to maximize the use of multiple funding sources to impact workforce and economic development. The State intends to build the alignment and communication between the State EDB, the Commission on Workforce Development, and the Alliance in a way that promotes a common understanding and vision for workforce and economic development in North Carolina. This state level collaboration is expected to lead the effort in planning and implementing workforce strategies that address North Carolina’s priorities and the national strategic priorities. . Employing a four-pronged approach, Governor Easley’s economic development policies capitalize on the strengths of North Carolina’s economic base: 1. Targeting economic development and business retention efforts to companies in industries with growth potential and that provide a good quality of life for North Carolinians. 2. Providing tax and financial incentives to new and existing companies that provide good wages and quality of life for North Carolinians. 3. Providing state-of-the-art public/private partnerships for training and knowledge transfer for high-growth industry clusters. 4. Targeting additional resources to better serve North Carolinians who are most in need. 1. Target economic development and business retention efforts to companies in industries with growth potential and that provide a good quality of life for North Carolinians. The EDB serves as the State’s top economic development policy advisory board and is responsible for recommending economic development policy to the Governor. North Carolina has identified the following target industries: Growth Industries These are growth industries or industries that provide synergy to an industry cluster. • Industrial Chemicals, Plastics and Rubbers, • Transportation (including manufacturing of aircraft engines, boat building, automotive components, aerospace), 34 of 138 Approved by USDOL June 29, 2007 • IT/Telecommunications (including communications equipment, electronics, semiconductors, and software), • Industrial/electrical machinery, • Life Sciences/Biotechnology/Pharmaceuticals, • Military • Financial and Business Services, and • Health Care Services. Maintenance Industries These are industry sectors within declining industries that continue to show promise and growth. • Textiles/Apparel/Hosiery (for example, the manufacturing of non-wovens and technical performance-based textiles), • Forest Products/Agribusiness (for example, specialty crops and enhancement of products, which would include recycling industries), and • Furnishings (for example, higher-end furniture and other niches). The High Point International Home Furnishings Market applied for and has received the International Buyers Program designation by the U.S. Department of Commerce. This designation means that the U.S. Department of Commerce will assist in a worldwide recruiting effort to bring in more international buyers to the 2008 market. • The Furniture IST has sent a survey to all furniture manufacturers seeking their input on current trends and needs. This survey data will be compiled into a database by Editors At Large in Winston-Salem. The PRSP staff of the Department of Commerce will then analyze the data for policy recommendations and potential growth opportunities. Since the release of EDB’s Strategic Plan (Appendix 15), the Motorsports industry has been added to the list of target industries. Additionally, the State Board of Science and Technology (see below) has identified Nanotechnology (the ability to measure, see, and assemble objects on the scale of atoms and molecules) as a priority for North Carolina’s research, development, and commercial sectors. As materials science, a basic research and development technology, and an advanced manufacturing discipline, nanotechnology will have significant impact on virtually every commercial sector in the State. In the spring of 2005, the State Advisor for Science and Technology, the Department of Commerce, and the North Carolina Board of Science and Technology formed the Governor’s Task Force on Nanotechnology and North Carolina’s Economy. Composed of twenty-eight members and broadly representing business, academia, and the public sector from across the state, the Task Force’s charge was to: Two approaches underlie that roadmap: 1. Strengthen North Carolina’s core economic development approach to advancing technology-based economic development. 2. Strengthen the building blocks within that core approach that focus specifically on nanotechnology. Released in 2006, the roadmap is a call to action for North Carolina’s political and policy leaders, industry, research institutions, educators, and the public to: 35 of 138 Approved by USDOL June 29, 2007 • Increase our ability to innovate; • Increase the levels of collaboration between our companies and R&D centers; • Develop a well-educated and trained workforce; • Provide a supportive public and political policy environment; and, Diversify our technology cluster portfolio to include nanotechnology. In 2006, additions were made to the 2004 Strategic Plan to focus on such growth opportunities as entrepreneurship, a new State Port, military growth, and sustainable economic development. • Entrepreneurship was identified by the NC Secretary of Commerce as a priority item and a $5 million grant was given to the UNC System by the Kauffman Foundation for Entrepreneurship education in the state over five years. • The North Carolina State Ports Authority is planning a world class container terminal to be completed over 8-10 years, the North Carolina International Port. • North Carolina will take advantage of the anticipated relocation of two military headquarters organizations and additional troops at Fort Bragg/Pope Air Force Base. In 2005, the NC Military Business Center produced a Gap Analysis. • In order to focus on Sustainable Economies and Sustainable Economic Development, the NC Department of Commerce hosted a Sustainable Business Forum in June 2006 and is working with the NC Sustainable Business Council. With the passage of North Carolina’s 2006 budget, a bipartisan coalition of North Carolina lawmakers established the One North Carolina Small Business Program. The program broadens and realigns the existing One North Carolina Program to include aggressive and comprehensive financial support for entrepreneurial growth companies within the state. Lawmakers created the program in response to a realization that one of North Carolina’s greatest economic development opportunities is in bridging the gap between its internationally regarded innovation capacity and the creation of small businesses that can commercialize it. The program recognizes the importance of entrepreneurial growth companies to the state’s economy and places efforts to enhance them on equal footing with efforts focused on traditional recruiting and expansion. It does so by making North Carolina small businesses eligible for state matching grants to support research projects funded under the federal Small Business Innovation Research (SBIR) and the Small Business Technology Transfer (STTR) programs, which provide funding for small businesses to commercialize their technologies. Since the program’s launch in January 2006, the Board of Science and Technology has provided more than $3.5 million in matching awards to 46 small businesses throughout North Carolina. Industry Sector Teams are staffed and led by the Department of Commerce, and are comprised of personnel from its various departments as well as from NCCCS, Universities, Regional Partnerships, and local business representatives along with representatives from several other organizations. The goal of these enterprise teams is to develop marketing strategies, to recruit new companies to North Carolina, to support existing and entrepreneurial businesses, and to create and maintain favorable business environments within the State’s cluster industries. The Industry Sector SWAT Team, comprised of a small core team from across the NC Department of Commerce, provides oversight and support to the Industry Sector Teams and ensures the overall collaborative success of the initiative. Additional agencies supporting research, development, and industrial sectors critical to the future of North Carolina’s economy include the following: • The North Carolina Board of Science and Technology, a Division of DOC - the mission of the Board is to advise and make recommendations to the Governor, the General 36 of 138 Approved by USDOL June 29, 2007 Assembly, the Secretary of DOC, and the EDB on the role of science and technology in the economic growth and development of North Carolina. In pursuit of that mission, it also encourages, promotes, and supports scientific, engineering, and industrial research applications in North Carolina, investigates new areas of emerging science and technology, and conducts studies on the competitiveness of state industry and research institutions in these fields. • The North Carolina Biotechnology Center - a private, non-profit corporation created by the State in 1984 and supported by the General Assembly. The Biotechnology Center's mission5 is to provide long-term economic and societal benefits to North Carolina through support of biotechnology research, business and education statewide. A 65- member staff works toward six goals: • Strengthen North Carolina's academic and industrial research capabilities • Foster North Carolina's biotechnology industrial development • Enhance the teaching and workforce-training capabilities of North Carolina's educational institutions • Work with business, government and academia to move biotechnology from research to commercialization in North Carolina • Inform North Carolinians about the science, applications, benefits and issues of biotechnology • Establish North Carolina as a preeminent international location for the biotechnology industry 2. Provide tax and financial incentives to new and existing companies that provide good wages and quality of life for North Carolinians. Credits for Growing Businesses (Article 3J Credits) Article 3J provides three types of tax credits to eligible taxpayers that undertake qualifying activities in North Carolina: 1) Credit for Creating Jobs, 2) Credit for Investing in Business Property, and 3) Credit for Investment in Real Property (tier 1 only). These credits may be combined to offset up to 50% of the taxpayer’s state income and franchise tax liability, and unused credits may be carried forward for up to five years (15-year carry-forwards apply to the Credit for Investing in Real Property and 20-year carry-forwards exist for taxpayers that invest at least $150 million over a two-year period). Credits vary by geographic location with more distressed areas receiving higher credits. Job Development Investment Grant Program (JDIG) is a discretionary incentive that provides sustained, annual grants to new and expanding business measured against a percentage of withholding taxes paid by new employees. The program is authorized to award from 10 percent to 75 percent of withholdings for eligible positions. Grants awarded under the JDIG program can result in payments to up to 25 businesses per year for up to 12 years per business. The total amount awarded in a given year cannot exceed $15 million. One North Carolina Fund is a flexible, discretionary tool that can be used in competitive situations in which North Carolina must respond quickly to enable job creation and/or retention within its borders. Its purpose is to attract and retain sustainable investments and jobs to North Carolina communities, to stimulate state and local economies, and to provide resources to enable communities to improve their economic development infrastructures, expand their tax bases, and improve their general economic health and welfare. North Carolina Economic Infrastructure Fund, created by the General Assembly in July 2004, is a $20 million initiative to stimulate business growth and job creation in rural and low- Source: the Biotechnology Center's strategic plan, “New Jobs Across North Carolina: A Strategic Plan for Growing the Economy Statewide through Biotechnology”, January 2004. Fifty-four strategies to facilitate growth in this critical industry are addressed at the Center’s Web site, http://www.ncbiotech.org/ncindustry/stragplan/strategicplan.cfm#stratplan. 37 of 138 Approved by USDOL June 29, 2007 wealth communities. The funds are administered by the North Carolina Rural Center through four programs designed to update water and sewer facilities, provide business and technology assistance, renovate and restore buildings for new and expanding businesses, and invest in major research and development projects with the potential to stimulate job growth in rural and distressed areas. Industrial Revenue Bonds & Composite Bonds provide low-interest capital for new and existing manufacturers, with goals of sustaining and growing industrial employment in North Carolina. Community Development Block Grants are accessible to local governments to fund infrastructure projects that will serve a business that commits to create quality jobs for low- and moderate-income persons. Industrial Development Fund (IDF) assists town, city or county governments with project financing in the more distressed counties of the North Carolina. As an incentive for job creation by new or expanding industry, local units of government utilized the IDF to provide infrastructure improvements in the form of grants or loans for building renovation and equipment to companies that commit to create quality jobs. The new tier structure under the Article 3J tax credit program provides for a portion of the total JDIG grant made to a project located in a tier 2 or 3 county to be payable to the Utility Account of the Industrial Development Fund pursuant to G.S. 143B- 437.61. Before 2007, 25 percent of the JDIG grant liability in tiers 4 and 5 were set aside into the Utility Account of the Industrial Development Fund. Starting in 2007, 15 percent in a tier 2 is put into the account and 25 percent for a tier 3. To date, the amount transferred to the Utility Account of the Industrial Development Fund from JDIG totals $1.8 million. The amount to IDF through the JDIG program will grow over time. 3. Provide state-of-the-art public/private partnerships for training and knowledge transfer for high-growth industry clusters. is the collaboration between the National Aerospace Development Center (NADC) and strategic partners in the State of North Carolina, academia, and private industry that make up the North Carolina Aerospace Workforce Development Alliance (NCAWDA). The primary objective of the NCAWDA is to promote the growth of the aerospace industry through targeted solutions that address issues related to the industry’s changing workforce demographic. The North Carolina Aerospace Initiative is an extension of the National Aerospace Workforce Solutions Initiative (NAWSI). NAWSI was developed by NADC in response to the growing national aerospace workforce crisis as identified by the President’s Commission on the Future of the U. S. Aerospace Industry. Regional Skills Alliances have proved to be an effective model for regional economic development strategic planning, in which employers within key sectors, public agencies, and schools share information and leverage resources to train workers for region-wide needs and opportunities. The goal of these alliances is to promote collaboration and coordinated strategic planning for economic development, community development, and workforce development among the many agencies involved in those activities. University Technology Transfer Development Initiative (TDI) is a UNC system initiative created with funding from the National Science Foundation (NSF). The goal of TDI is to examine and increase capabilities and resources that support technology transfer at the 16 UNC institutions. The study and recommendations are available at http://intranet.northcarolina.edu/docs/aa/research/initiatives/TDI_Interim_report_June_03.pdf. 38 of 138 Approved by USDOL June 29, 2007 The Millennial Campus Act makes it possible for any UNC system institution to develop facilities that promote university/government/industry partnership through physical proximity of participating organizations and through programs designed to foster collaboration between the three sectors. Millennial Campuses capitalize on the State’s considerable research strengths in areas such as biotechnology, education, information sciences, and microelectronics. A major goal of this program is to encourage the formation of start-ups by promoting synergies resulting from collaboration of research and development efforts at local universities and local entrepreneurs. North Carolina Motorsports Testing and Research Complex, a proposed research complex to be housed at UNC-Charlotte, is planned to strengthen and expand the productive industry clusters already present in North Carolina in motorsports, high-end automotive parts manufacturing, and the military. This proposed research complex would facilitate growth by building synergies and promoting technology transfer amongst these clusters. is a public/private enterprise that is developing a 630-acre site specifically for research and development testing of new automotive and transportation technologies. This will include a 2.5 mile development track built to accommodate automotive and truck testing needs (and be funded through donations), garages and office space needed by client users, and a wide range of shared testing labs with specialized facilities for the testing of alternative fuel technologies, including bio-diesel, hydrogen, and fuel cell labs. Facilities at the Center will be available on a lease basis based on client needs. The groundbreaking was in April 2006. The state provided start-up funding in 2006-07 of approximately $7.5 million and currently proposals are for approximately $11.5 million for capital improvements and $3 million for operating expenses through fiscal 2008-09. The NC Department of Commerce is working with NCSU’s College of Textiles (COT) in order to increase the competitiveness of the textile industry through knowledge transfer and training as part of two initiatives. The first is developing an industry data warehouse and related collaboration website. The textile, apparel, and hosiery industry would be able to connect for training and knowledge transfer in order to increase the competitiveness of the industry. In addition, the COT would hold educational seminars for the industry. The second is research on developing the technical textile performance sector of the industry. Industry focus groups would be used to determine the needs of this competitive and growing industry sector in North Carolina and ways to become the leading location for this sector. The strategy is to grow the dynamic portions of the textile complex and move dislocated textile workers to this sector. 4. Target additional resources to better serve North Carolinians who are most in need. Target resources and services to workers who need transition assistance so that they may be prepared for and benefit from North Carolina’s changing economy and job opportunities. This targeting of resources and services will require the following: • Expansion of incumbent worker training opportunities for businesses and their employees to increase worker productivity and to avert worker dislocations. • A comprehensive strategy for dislocated worker transition assistance to training, support services, and reemployment. • Targeting services and resources to new and existing worker pools that may require special education, training, and support services. These worker pools include disadvantaged youth (including youth dropouts), the (increasing) immigrant population, new labor market entrants, and low-wage workers. North Carolina has joined with the National Governor’s Association in their Policy Academy on Sector Strategies. The state applied in 2006 and was accepted. The initial sector chosen was Allied Health. Plans are to continue with Allied Health and to develop the workforce strategy for 39 of 138 Approved by USDOL June 29, 2007 other growth sectors in the state. The goal is to enable regional workforce intermediaries to meet the growing need for a skilled workforce within the sector by integrating workforce and economic development strategies. As described by the sector strategy vision: North Carolina is committed to the development of sector strategies that include substantial employer engagement, deep community connections, career advancement opportunities, integrated service delivery and support, industry driven education and training, and connected, regionally based networks. This common workforce development agenda will support flexibility, innovation, and effective use of resources and services. The 24 local WDBs in North Carolina are the primary workforce intermediaries for developing and sustaining partnerships and collaborations that define workforce needs and gaps in local communities. The Commission on Workforce Development expects each local board to be a “convener” of workforce development stakeholders to address, on a continual basis, workforce and economic issues. North Carolina recognizes, however, the need to build local WDB capacity to meet the expectations that the State, in particular the Commission, believes local boards should have. Specifically, the State will work with local WDBs and local officials to strengthen the boards’ abilities to promote and sustain partnerships that accomplish the following: • Organize multiple public and private partners and funding sources around common goals; • Understand the special needs of business and industry and influence the development of services and programs in response to those needs; and • Promote innovation in finding solutions to workforce issues. Section 1.D describes the Commission’s focus and activities in regard to building local workforce development board capacity. The State will also continue to support strategies that meet the worker recruitment and retention needs of key industry sectors within North Carolina. Title I WIA funds have been used to support the development of regional skills alliances in two of the 24 local workforce areas. These alliances, at the regional level, include employers within key sectors, public agencies, and education and training institutions who share information and leverage resources to train workers for region-wide needs and opportunities. North Carolina looks for opportunities to target existing state and federal resources to support workforce needs in high-growth industries and high-demand occupations. WIA statewide activities funds are used to leverage and support community college-based training programs in high-growth or high-demand occupations. This funding stream is also used to leverage federal and state grants received by North Carolina workforce entities at both state and local levels that target training in growth industries, demand occupations, and targeted labor pools. Training in high-growth/high-demand occupations through the Incumbent Workforce Development Training Program is supported. This program, funded with WIA statewide activities resources, also 40 of 138 Approved by USDOL June 29, 2007 complements the state-funded, community college-based NEIT program by providing training assistance to existing industries that do not qualify for NEIT training assistance. The State is also using system resources to build the capacity of business services at the local level. Special grants are provided to local WDBs so they can fund demonstration projects that build local board capacity, develop partnerships with key business sectors, and strengthen their understanding of local labor markets and business needs. North Carolina’s system resources will continue to target and support innovations that are responsive to business and community needs. The State has used WIA funding to support local workforce development boards capacity to establish business services staff positions that work with the board and the JobLink service delivery system to ensure that appropriate relationships and connections are made with the business and economic development community. Section 1.D describes the states plans for supporting the implementation of regional sector strategies in North Carolina that will target training and related resources to industry sectors with potential for sustainable growth. North Carolina is a state dominated by small businesses. Services and benefits provided for education, employment, and training in the workforce development system are designed from a “small-business-as-customer” perspective. The JobLink Career Center system is designed to meet the human resource needs of small business. This design is based on the premise that small businesses have fewer resources for human resources and development than larger businesses have. Because surveys and focus groups have determined that small businesses are not aware of services available through the JobLink network, the State’s focus is on marketing the North Carolina JobLink Career System on a statewide level. All of the 58 community colleges in North Carolina have small business centers that support existing small businesses with services and information, and also provide small business development training for entrepreneurs needing assistance in starting small businesses. The State has provided grants to the community college system to support curriculum development for small business training, and also to support a special collaboration to train dislocated workers in small business development within the small business centers. The Business ServiCenter is a business service call center within DOC that quickly and efficiently guides small and medium businesses to appropriate business services, including workforce recruitment, training services, and retention resources and services. Industry specialists guide businesses to existing programs and resources that may lead to improved worker productivity and company profitability. The New Opportunities for Workers (NOW) program is a collaborative initiative between the State Board, the North Carolina Rural Center, NCCCS, and NC REAL Enterprises. This program provides entrepreneurship/small business development training to dislocated workers who have the appropriate level of serious interest in starting a business as their personal strategy for reemployment and self-sufficiency. The North Carolina Rural Center has also spearheaded the organization of the North Carolina Business Resource Alliance, which is a coalition of organizations that support small business. Through the Rural Center and the Business Resource Alliance, an entrepreneurship education and training directory has been produced and is available to JobLink Centers and other workforce development entities throughout North Carolina. 41 of 138 Approved by USDOL June 29, 2007 The UNC system has 17 Small Business and Technology Development Centers across North Carolina. Each of these centers is affiliated with a university, and each helps small businesses or those interested in starting a small business. Services include management counseling (operations, planning, and human resources) and educational services, business research, and technology commercialization. The majority of the grants to North Carolina businesses for training existing workers in the Incumbent Workforce Development Training Program and in the NEIT program are awarded to small and medium size businesses. Statewide activities funds are used specifically to support workforce development activities that complement the Governor’s vision and the strategic focus of the Commission on Workforce Development, both of which are closely aligned with the national strategic direction. Statewide activities funds are used in a number of ways: • To support competitive grant programs to local workforce areas for incumbent worker customized training for companies in high-growth/high-demand industries. • To support funding for special projects at the local level for the development of regional skills alliances and other projects that strengthens the connection between the workforce system and business and industry. • To support the community college system in areas of system capacity to meet the needs of business, to meet the needs of targeted labor pools, and to support innovations that lead to improvements in curriculum and training approaches for future skill needs of business and industry. • To incent the JobLink Career Center system to achieve enhanced levels of service integration and partnership building through the JobLink Chartering process (North Carolina’s One-Stop certification methodology). • To support projects that connect the services of community-based and non-profit entities in local communities with the services and benefits provided by partners within the JobLink network. • To fund grants to local workforce areas to support innovative approaches to serving youth. • To support the development of new computer based tools and resources within the Labor Market Information Division (LMID) and DOC that provide new and expanded labor market and economic information to state level partners, local boards, and local JobLink service delivery staff. Involvement and continued support for strategies by several agencies and organizations provide solid foundation point for this work. Examples of these strategies include the following: • Increase apprenticeship opportunities to dropout youth; • Allow youth to enter a formal apprenticeship while pursuing a GED rather than requiring a high school diploma prior to enrollment; 42 of 138 Approved by USDOL June 29, 2007 • Require 240 hours of paid work experience as a graduation requirement for those youth pursuing the Occupational Course of Study, often a factor of keeping youth engaged in school; • Provide enhanced services to long-term foster youth. Challenge for Children is a strategy of DHHS that makes the reduction of foster care backlogs a top social services priority. This strategy focuses on children who are long-term in the system and are starting to “age out”. • Provide quality and free child care to children of young teen parents, who themselves are often school dropouts; and • Improve behavior of troubled youth by providing residential wilderness camp experiences. • Continue regularly scheduled state and local area workforce partners meetings across the state to include but not limited to 24 local workforce area directors and state agency representatives from Vocational Rehabilitation, Community Colleges, Employment Security, Public Instruction, Rural Center, Corrections, and Juvenile Justice. Agency representatives were pulled together to plan the calendar year meetings and are asked for input throughout the year as each agenda is set prior to the next meeting. • Continue annual workforce partners’ conference held each Fall to include all partnering agencies and tracks that represent emerging issues and trends. • Contribute to a Youth Summit to be planned by local workforce area Youth Leads for youth customers. Additional strategies include the following: Juvenile Justice - Strategies include these specific programs: • Juvenile Crime Prevention Councils – operate in all counties and are charged with the development of strategies to intervene, respond to and treat the needs of juveniles at risk of delinquency. Juvenile Crime Prevention Council members work to fund these types of services and programs in their local communities: Counseling, Home-based family services, Treatment centers, Psychological services, Residential group homes, Restitution, Specialized foster care, Shelter care, and Guided growth programs. • Support our Students - prevention program that addresses the predictors of dropping out: lack of a caring adult, grade retention due to academic performance, and school attendance. • Eckerd Youth Alternatives - a residential wilderness camp for youth ages 10-17 who have behavioral problems. Since poor behavior is a predictor of dropping out and youth will exit the program just prior to the legal, allowable age for dropping out, this strategy for helping youth transition out of the last year of the program has potential for dropouts. • The Center for the Prevention of School Violence has been a part of the North Carolina Department of Juvenile Justice and Delinquency Prevention (DJJDP - Center) since 2000. The DJJDP - Center serves as a resource center and "think tank" for efforts that are directed at guiding all youth toward becoming productive members of their schools and communities. The Center provides information and technical assistance to those who are motivated to help young people positively develop in environments that are as safe as possible. North Carolina State Occupational Information Coordinating Committee (NC SOICC) – one strategy to promote cross-agency collaboration is to enhance youth access to and utilization of NC SOICC career resources for youth. Building on NC SOICC’s unique history of interagency product creation and training, State employees who work with youth will continue to participate in NC SOICC’s professional training opportunities and to facilitate ongoing development of North Carolina-specific resources that link academic and career planning for youth. 43 of 138 Approved by USDOL June 29, 2007 College Foundation of North Carolina is a nonprofit partnership between Pathways of North Carolina, College Foundation, Inc., and the North Carolina State Education Assistance Authority. These organizations have broad expertise in helping students to prepare successfully for college and to find the best financial aid alternatives. Together, they provide a complete and comprehensive source of information - and real solutions - for students and their families. • GEAR UP, Gaining Early Awareness and
Object Description
Description
Title | State of North Carolina two-year state plan for Title I of the Workforce Investment Act and the Wagner-Peyser Act |
Other Title | Two-year state plan for Title I of the Workforce Investment Act and the Wagner-Peyser Act |
Date | 2007 |
Description | July 1, 2007-June 30, 2009 |
Digital Characteristics-A | 3 MB; 224 p. |
Digital Format |
application/pdf |
Full Text | : : Approved by US Department of Labor June 29, 2007 2 of 138 Approved by USDOL June 29, 2007 .......................................................................3 ......................................................................................................................................4 .........................................................................................13 ..............................................................................14 ..................................................................19 .......................................................................................................32 .....................................................................................44 ..................................................................................47 ................................49 ............................................................................................................................67 .....................................................................................................................96 ......................................................................................................110 .....................................................................................112 ..............................................................................................114 ........................................................115 Appendix 1 includes a List of Acronyms and Abbreviations. 3 of 138 Approved by USDOL June 29, 2007 See text below. The North Carolina Commission on Workforce Development (State Board), through coordination by its staff, assumes the lead role in the development of the State Plan. Guidance provided by the Governor’s policy advisors is incorporated, as well as input from a number of sources, including the following: • State Board members, • Major State agency stakeholders, • North Carolina Economic Development Association, • North Carolina Economic Development Board, • Chambers of Commerce, • Members of the Business Community, and • Members and staff of Local Area Workforce Development Boards. Input for developing and finalizing the State Plan includes the following: 1. Electronic Survey – for the original submission of the five-year planning cycle (July 1, 2005-June 30, 2010, an electronic survey was distributed to the aforementioned stakeholders. The survey included four questions that asked for feedback on the most important workforce issues for North Carolina and ways to enhance the One-Stop System (known in North Carolina as the JobLink Career Center System or JobLink). Stakeholders were asked to forward the survey to others they deemed appropriate. A compilation of the survey results was reviewed and considered. 2. Individual Meetings - members of the Commission Executive Committee and its Executive Director held an open forum with those in the workforce development community and conducted one-on-one meetings with major State agency leaders for the purpose of information-gathering and honest discussion. State agencies that participated in the individual meetings included the Employment Security Commission (ESC) of North Carolina, the North Carolina Community College System (NCCCS), the North Carolina Department of Health and Human Services (DHHS), and the North Carolina Department of Commerce (DOC). 3. Web Site Review - the final draft of the State Plan was posted on the State Board’s Web site for public comment, and copies were distributed to the Governor and State Board members for review. Additionally, electronic notification was sent to the workforce development community at large, seeking comments and recommendations. Recommendations and suggestions from these methodologies, collaborative efforts in development, and review by key State agency stakeholders have combined to shape North 4 of 138 Approved by USDOL June 29, 2007 Carolina’s State Plan. The third and fourth years’ modification has incorporated additional insight from the North Carolina Commission on Workforce Development’s ‘State of the North Carolina Workforce’ Report (January 2007). Posting of the modification and electronic notification were widely distributed. The modification development timeline was created in February 2007, broadly shared, and followed throughout the collaborative plan modification process. The public comment period and subsequent input were used. In his second term of office, Governor Michael Easley has continued to move North Carolina toward his vision for One North Carolina. The One North Carolina Agenda is a set of goals that builds the State’s educational, economic, and social support infrastructure … “where every citizen has a chance in the winner’s circle of our economy” (Governor Easley). Key elements of the One North Carolina Agenda include the following: • Promote economic prosperity with an aggressive development strategy designed to bring high-skilled jobs, a high-tech infrastructure, and a quality transportation system to every region of North Carolina. • Build a system of education that gives every child every opportunity to succeed, regardless of geographic location or economic condition. • Implement the More at Four pre-kindergarten program to help at-risk four-year olds start school healthy and ready to learn. • Recruit and retain the highest quality educators. • Develop a workforce prepared to meet the demands of a global economy by expanding life-long learning opportunities. In 2006 there were nearly 100,000 new jobs created in North Carolina for a 2.5 percent growth rate. The unemployment rate for January 2007 was 4.6 percent, the lowest rate since April 2006. North Carolinians understand that if our economy is to continue to grow and compete globally, we must have the best-educated workforce. The more our children learn, the more qualified they are for high-skilled jobs for the 21st century. Governor Easley’s vision for North Carolina’s workforce development system provides a continuum of employment, education, and training services for citizens and business that reflects community needs. As resources decrease and needs increase, the workforce development system is expected to provide services in a seamless, unified approach that is effective and efficient. The workforce development system must offer “end to end” education, employment, and training solutions that begin with excellent public schools that impact business recruitment and retention, and that offer continuous learning and skill building opportunities for emerging and incumbent workers. North Carolina faces significant challenges as it seeks to create quality jobs for all North Carolinians. While the economy is steadily improving, the State is still challenged by the effects of a four-year, manufacturing-led downturn that continues to be influenced by global economic forces. During this period, the State lost over 160,000 manufacturing jobs to business closings and permanent layoffs, mostly in the textile and furniture industries. The economy has replaced many of those lost jobs, but often at lower wages or with temporary work. In January 2007, the 5 of 138 Approved by USDOL June 29, 2007 North Carolina Commission on Workforce Development (the State Board) produced a report titled the “State of the North Carolina Workforce” (Appendix 18). This report is an in-depth quantitative analysis of the current and projected labor market supply and demand with a goal of identifying our challenges and opportunities for completing a successful economic transition. The report identified key trends that will influence industries demand for labor and the supply of workers available to meet the demand within the period of 2007-2017. These key trends included: • North Carolina’s traditional “middle jobs”—those that paid a family-sustaining wage and required minimal formal education or training—are disappearing as part of this transition. • New job creation is concentrated in certain fast-growing metropolitan areas. • Many areas of North Carolina are not prospering from the economic transformation. • The future prosperity of all North Carolinians depends on achieving higher educational attainment levels for all citizens. • Impending baby-boom retirements will exacerbate an emerging skills gap among experienced, skilled workers. • High-skill in-migrants will help fill part, but not all, of this skills gap. • Low-skill in-migrants present both opportunities and challenges in meeting the state’s workforce needs. Because North Carolina is widely acknowledged to have an exceptional business climate, the State is aggressively investing in getting its economy growing through a transition from what was a predominately labor-intensive manufacturing base to one which is knowledge–based, characterized by a highly skilled, value-added workforce. Education levels must increase across the board to meet the growing demand for higher skilled workers over the next decade. In the near term, North Carolina is stimulating its economy by building on its transportation and education infrastructure. Governor Easley’s plan is to enhance roads and bridges so that citizens can get from where they choose to live to good jobs, and so that business and industry will have efficient transportation outlets to move products to market. The State will continue to invest in its universities and community colleges to support the demand for training and retraining its workforce, including retraining for workers who lost their jobs during the economic downturn, a downturn permanently impacted by globalization. The State will continue to build on its investments in growth industries like biotechnology, and expects to excel in this area, in research, development, and bioprocessing. North Carolina will also target companies that apply new and innovative technology to remain competitive in traditional industries, such as textiles and furniture. In the long term, North Carolina will continue to invest in education priorities as identified in Governor Easley’s One North Carolina Agenda. Education and training will be key success factors as North Carolina moves toward a knowledge-driven economy. The quality of the State’s educational and training system and the ability to continuously re-train the workforce will maintain the State’s attractiveness to companies looking to move to or expand in North Carolina. It will require strong public/private partnerships and collaborations, and a unified public workforce development system that can respond quickly to workforce and economic needs in local communities through service delivery and resource leveraging. 6 of 138 Approved by USDOL June 29, 2007 See text below North Carolina faces an unprecedented number of workforce and economic challenges that test government, business, and community leaders at the State and local levels. The economic downturn, market globalization, and worker dislocations have adversely impacted North Carolina. The State Economic Development Board’s (EDB) strategic plan recognizes that the transition of the State’s economy from labor-intensive to knowledge-based (workplace environments) is directly linked to the skills of the workforce. The State will experience a fluid and complex business environment – an environment where all workers will be needed with skills that promote increased productivity. The EDB, working closely with the Governor’s office and the Commission on Workforce Development, appointed a subcommittee on Workforce Development Governance and Accountability (Subcommittee). The EDB charged the Subcommittee with examining the state level workforce development structure of program governance, management, and accountability, and with making recommendations on how this structure must function to effectively meet current and future economic and workforce needs. The Subcommittee found that the JobLink Career Center system (North Carolina’s One- Stop service delivery network), including state and local level partnerships, has invested significant time and resources in growing this service delivery model in North Carolina. It found agreement among public and private stakeholders that this system is the right approach for delivering market-driven services to workers and employers. However, it determined that the JobLink system has not reached the level of resource and service integration needed by workers and businesses at the local level. The Subcommittee also recognized significant budget and service capacity constraints within key workforce development agencies at the state and local levels, and recognizes that current and future needs will demand flexibility, easy service access, and enhanced services to new and existing business and industry. The Subcommittee identified the following needs in the state level workforce development structure: • Enhancing methods for resource leveraging to counter budget and service delivery capacity issues; • A common vision that guides policy, program design, and fund utilization; and • Clear lines of accountability and communication that support effective service delivery to system customers. The EDB Subcommittee recommended the establishment of a state level workforce development management alliance (Alliance). This Alliance would be charged with implementing plans, policies, and strategic initiatives that involve multiple agency programs and resources. The Subcommittee also recommended that an individual, designated and accountable to the Governor, and with a clearly defined role and line of authority, chair this Alliance. Other Alliance membership would include the following: • Chairman of the Employment Security Commission, • President of the Community College System, • Secretary of the Department of Commerce, and • Secretary of the Department of Health and Human Services. 7 of 138 Approved by USDOL June 29, 2007 The EDB and the Commission (State Board) endorsed this recommendation. In 2006, the Governor established the Workforce Alliance (the Alliance) as recommended by the State Board and the Economic Development Board. The Alliance is charged with the following responsibilities: • Planning, policy development, and funding across agency and program lines, • Clarity in accountability and communication, • Support and alignment of the work of the Commission and the State EDB, • Enhanced service planning for response to business recruitment and expansion and worker dislocations, • Enhanced service integration and resource-sharing within the JobLink Career Center system, and • Identification of system capacity and staff development needs. The Alliance is expected to work closely with the Commission to operationally put in place the Governor’s vision for a workforce development system that responds to North Carolina’s economic needs with a seamless system of services operating within a common infrastructure at the state, regional, and local levels. This system is built around a common vision for workforce and economic development, strong state and local governance structures, a clear and accountable state level management structure, and the ability to respond to worker and business needs with flexibility and creativity. Governor Easley is committed to providing lifelong learning opportunities for the citizens of North Carolina. The State recognizes the importance of quality public school education beginning at early ages, and the importance of continued education and skills attainment throughout one’s career. North Carolina will continue to leverage federal, state, local, and private funding to support the need for current and future knowledge-based workers. The State will continue to work closely with its business and industry partners to define and understand their ever-changing needs regarding worker skills. North Carolina works closely with business organizations like the North Carolina Chamber of Commerce, the North Carolina Business Committee for Education (NCBCE), The North Carolina Rural Economic Development Center, and the North Carolina Economic Development Association to ensure that their needs are understood. The State will continue to appoint strong business representatives to the Commission and the State EDB. Additionally, North Carolina will raise its expectations of private sector-led local workforce development boards (WDB) to ensure that private sector appointments reflect the industry makeup of the area, and that the local WDBs have sufficient capacity to fulfill their roles and responsibilities. Governor Easley continues to leverage resources to introduce training and education reforms and opportunities and to build on existing programs that impact both the emerging and incumbent workforce. Examples of these efforts include the following: Early Childhood and Public School Initiatives • The More at Four early childhood initiative is a state-funded effort to work with at risk preschoolers to ensure their readiness for entry into K-12. Funding has been increased for this initiative. Twenty Thousand four year olds are enrolled in the More at Four program with an additional 10,000 to be enrolled by the end of 2007. • The 21st Century Skill Center initiative, recently announced, is a public/private partnership supported by NCBCE and other corporations and businesses, plus the Partnership for 21st Century Skills. The project will focus on preparing students for high-skilled jobs in the new economy. The Center will work with public school systems, community colleges, and university educational institutions to redesign school curricula, update teacher-training 8 of 138 Approved by USDOL June 29, 2007 programs, and provide improved assessments of student skills. Educators, administrators, and the business community will work with the Center to identify the skills needed to ensure that North Carolina continues to compete successfully in the global economy. • The creates early college opportunities in high schools. High school students take college courses at their high school and are able to earn Associate Degrees with just one extra year of study. This not only saves families tuition payments but also gets trained workers out in the labor market at a faster pace. The state plans to have 75 Learn and Earn high school projects by the end of 2009. • The New Schools Project (NSP), launched in August 2003 by the Governor's Education Cabinet and the Public School Forum, is a private/public partnership that focuses leadership and financial resources on change in the State’s high schools. Backed by an $11 million grant from the Bill and Melinda Gates Foundation, this project will award grants and provide other support to create up to one hundred (100) new, small high schools across the State over the next five years. The schools will serve as models for academically rigorous curricula to prepare all students for work and college. The NSP will also seek to engage key stakeholders in shaping consensus for change in the high schools and action steps to get there. Examples of initial projects include the following: • Career Academies -To date, eight school districts (Newton-Conover, Scotland County, Wake County, Winston-Salem/Forsyth County, Asheville City, Cumberland County, Durham Public Schools, and Granville County) have been awarded grants to develop career academies. Each of the grant recipients is committed to creating new high schools and schools-within-existing-schools that focus on career preparation in the health sciences. They will be developed with regional health care and higher education partners. • Middle and Early Colleges - Five districts (Buncombe, Catawba, Guilford, Durham and Nash-Rocky Mount) have received grants to develop Middle and Early Colleges. By bridging the divide between high school and college, Middle and Early Colleges make higher education affordable, attractive, and more accessible. Such schools are located on either community college or university campuses. Upon graduation, students receive a high school diploma and either an Associate Degree or two years of transferable college credits. • High School Reform – To reform high schools and better prepare students for college and the workforce, recent grants from the North Carolina New Schools Project were awarded in three communities in northeast North Carolina, namely, Beaufort, Camden, and Dare. The funds will be spent to create new, smaller high schools that will offer focused learning and will help motivate students to make connections with both their teachers and the world beyond high school. Grant recipients commit to overall reform of their schools to change whatever is necessary to make the high school experience relevant to post-secondary plans and the world beyond high school for all of their students. Incumbent Worker Training • The Incumbent Workforce Development Training Program was designed and implemented in 2003 to promote and support partnerships with the business community to meet their worker training needs. Sponsored by the Commission on Workforce Development and managed through a partnership between the North Carolina Department of Commerce (DOC) and the 24 local Workforce Development Boards (WDBs), the program has invested over $12 million since 2003 to provide over 420 businesses with grants to train their workers. Continuation is planned for the 2007-2009 period. • The New and Expanding Industry Training (NEIT) Program, part of the NCCCS, provides customized training assistance in support of new, full-time production positions created in North Carolina. This kind of customized training assistance enhances the growth 9 of 138 Approved by USDOL June 29, 2007 potential of companies located in North Carolina while simultaneously preparing the State’s workforce with skills that are essential to successful employment in emerging industries. This nationally recognized customized training program is a proven economic development asset for the State, and is closely aligned with the Incumbent Workforce Development Training Program to ensure resource maximization and flexibility in providing enhanced business services. • The Focused Industrial Training (FIT) Program, part of the NCCCS, is a special training program for North Carolina's traditional industries. Serving a customer base composed primarily of manufacturing clients, FIT uses individual needs assessments and consultants to design and implement targeted, customized training for organizations that need to upgrade workers' skills because of technological or process advances. The program focuses on skill requirements that change as technology changes. • The Career Readiness Certificate Initiative (CRC) is a portable credential that promotes career development and skill attainment for the individual, and confirms to employers that the individual possesses the basic workplace skills of reading, applied math, and information locating. This certificate is an especially useful economic development tool in cities and counties where the academic achievement levels of the incumbent, dislocated, or potential workforce are inhibitors to business development. As a result of the testing, individuals earn a CRC or identify areas in which they need further training in order to earn a CRC. JobLink Career Centers will partner with North Carolina’s Community College system to make sure that training and education opportunities are available to meet targeted training needs. There are currently 34 CRC sites around the state with statewide rollout expected to be completed in 2008. Targeted Worker Populations • The Advisory Council on Hispanic/Latino Affairs, appointed by the Governor, focuses on issues affecting the Hispanic population in North Carolina. It has three major duties: 1) to advise the Governor on matters concerning the Hispanic community; 2) to establish a forum for the Hispanic community; 3) and to see that Hispanics are represented in all facets of government. Workforce development is a major issue with this population group; therefore, Commission staff attends the meetings, assisting with these types of issues. • The Office of Hispanic/Latino Initiatives is a community college-based initiative designed to assist the Hispanic/Latino youth population with successful entry and advancement in the workforce. Specific goals include accelerating the training and learning process of Hispanics and building on the strengths of the emerging population for the betterment of North Carolina’s workforce. • The Action Agenda to Aid North Carolina’s Dislocated Workers, a plan developed by the North Carolina Rural Economic Development Center, has both short- and long-term strategies to assist the thousands of North Carolinians who have been or will be impacted by job loss, either by business closings or by layoffs. The North Carolina Rural Economic Development Center, in partnership with Governor Easley’s cabinet agencies and other stakeholders, developed the Action Agenda (Appendix 2). The State Board will work closely with state agencies, federal agency partners, and local communities to implement measures that will assist workers and communities. A task force, under the auspices of the State Board’s policy and research committee has developed implementation strategies drawn from the Action Agenda. Implementation strategies implemented to date include the purchase of a Mobile JobLink Vehicle that will be used to provide on-site assistance to companies and their workers facing impending layoffs, the development of public awareness tools to ensure business and workers are aware of the resources and services available to them, and process strategies that link existing businesses who need workers to workers who will experience layoffs in local communities. • The Going Home Initiative is a collaboration of the Department of Corrections (DOC), and the JobLink Career Center system. Initially supported by a grant from the US Department of Justice, and leveraged with state activities funds from the Workforce Investment Act (WIA) 10 of 138 Approved by USDOL June 29, 2007 of 1998, this project works with soon-to-be-released inmates from North Carolina’s correctional institutions to assist in their transitions back into the communities and to employment. Market-Driven Demonstration Projects • Project Health is a demonstration project that began with a grant from the US Department of Labor (USDOL) high-growth initiative and leveraged with Workforce Investment Act (WIA) statewide activities reserve funds. This demonstration project is a collaboration between the State Board, the NCCCS, the North Carolina Hospital Association, and the public university system (UNC system). By increasing the number of qualified nursing instructors in the community colleges, this project addresses the shortage of registered nurses in North Carolina. While the federal project concluded at the end of 2006, learning’s are still being applied. The project supported 24 nurses to attain Master of Science degrees in nursing. These nurses became credentialed to teach in our community college system. For every additional qualified nursing instructor, 12-15 more students can be enrolled in nursing programs in our community colleges. Learning from this effort continues to pay dividends in the State. • The Retail Training Center is a collaboration between the Commission, the Central Piedmont Workforce Development Board, the National Retail Federation, and Northgate Associates (a retail shopping center owner). This training center was developed in response to the need for qualified workers by the retail industry. The training center works with retail companies to train new and incumbent workers in customer service, sales, and management skills. Between 2004 and 2006 the Center served 594 individuals with a placement rate of 74% in retail establishments. Over 50 participants received national professional certification in customer service by the National Retail Federation. Millennium Campuses The Millennial Campus Act makes it possible for any institution in the University of North Carolina system to develop facilities that encourage university/government/industry collaborations in research and development. These facilities capitalize on North Carolina’s considerable research strengths in areas such as biotechnology, education, information sciences, and microelectronics. Governor Easley envisions a transformation of existing policies and programs so that they are more adaptable to the local labor markets around the State. He expects the North Carolina workforce development system to clearly define the customer base that it serves and the processes it uses to serve workers and businesses through the forging and strengthening of partnerships, and to continue building the capacity to do so. North Carolina will continue to organize multiple partners and funding streams around common goals, bringing together businesses, workers, educational institutions, social service agencies, and other partners to design and implement policies and programs that improve labor market outcomes. North Carolina will take advantage of the broad representation of public and private interest on the state, regional, and local boards and associations to improve its understanding of labor market conditions, needs, and strategies. 11 of 138 Approved by USDOL June 29, 2007 The outcome of developing broad collaborations and partnerships at the state and local levels will be multi-faceted: • Broader opportunities for workers to be employed in jobs that offer opportunities for financial stability, • Higher level of business efficiency and productivity, and • Enhanced regional and local economies. The Commission on Workforce Development will launch two initiatives in 2007 that will support efforts toward transforming our system to meet labor market demands: In the fall of 2006, North Carolina was chosen as one of five states to become a participant in the National Governor’s Association’s (NGA) Policy Academy on Sector Strategies. The challenges faced by our education, workforce development, and economic development infrastructure compel our state to target sectors with the greatest potential for sustainable growth. As part of the NGA initiative, a team of state, local, and industry partners are developing action plans to define how the state will provide guidance, capacity building assistance, and funding support to build regionally based sector alliances throughout the state. WIA funding will support an initial competitive grant program for developing sector strategies in the allied health industry. This grant program is targeted for the summer of 2007. The Governor and the Commission on Workforce Development are committed to the development of sector initiatives that include substantial employer engagement, deep community connections, career advancement opportunities, integrated service delivery and support, industry driven education and training, and connected regionally based networks. The Commission has focused its work beginning in 2005 on building local workforce development board capacity. This has included developing local board standards, supporting local board access to expanded data and information sources, and developing staff development methods for local board staff. North Carolina understands the importance of workforce boards expanding their focus, program design, and resource utilization to support a more regionally based approach to workforce investment planning, governance and leadership. The Commission will implement strategies and incentive measures beginning in the spring of 2007 to support local boards’ transformation to regionally focused entities that drive strategic partnerships and alignments. Governor Easley’s plan for North Carolina, the One North Carolina Agenda, is a comprehensive, overarching, inclusive plan to make the State a place “Where every citizen has a chance to play in the winner’s circle of our economy” (Governor Easley). This comprehensive Agenda includes a clear vision for developing North Carolina’s youth: • Build a system of education that gives every child every opportunity to succeed, regardless of geographic location or economic condition. • Implement the More at Four pre-kindergarten program to help at-risk four-year olds start school at grade level, ready to learn. • Recruit and retain the highest quality educators. 12 of 138 Approved by USDOL June 29, 2007 • Develop a workforce prepared to meet the demands of a global economy by expanding life-long learning opportunities. • Enrich students with character education and with knowledge, and keep parents informed, empowered, and involved with school accountability report cards. During the 2007-2009 State Plan period the One North Carolina Agenda is committed to education building a skilled workforce by: • Expanding More at Four, a statewide pre-Kindergarten program for at-risk four-year-olds. With proceeds from the N.C. Education Lottery, this program will serve 40,000 children. • Providing a 9.6 percent increase for education above 2005-06 levels, including teacher salary increases and bonuses, in addition to an anticipated $425 million in N.C. Education Lottery revenues. • Demonstrating results from investing in education: Fourth graders performed above the national average in reading, behind only three states in writing and only five states in math. North Carolina SAT scores reached a new state high in 2005, increasing to an average score of 1010, twice the average national gain. • Continuing aggressive high school reform efforts by expanding the number of Learn and Earn high schools that allow students to obtain a high school diploma and an associate’s degree or two years of university credit in five years, and increasing the number of economic development-themed schools through the New Schools Project. By 2008, both these programs will be available to students in every county. • Implementing a plan to increase teacher salaries beyond the national average by 2008 while also raising the starting salary. • Expanding teacher-training opportunities through the community college system, providing scholarships to prospective teachers and providing more professional development for teachers and principals. • Placing 100 literacy coaches in middle schools across the state to train faculty to teach 21st Century skills. • Establishing the nation’s first 21st Century Skills Center to provide teachers with tools to more effectively teach students critical learning skills. • Increasing access to a higher education for all North Carolinians by fully funding enrollment growth and need-based financial aid at the University of North Carolina campuses. • Providing a 15.8 percent increase in funding for community colleges above 2005-06 levels which includes funds for salary increases for faculty and staff, new equipment, distance learning programs and financial aid. In addition, having a skilled workforce requires a vibrant economic community. The One North Carolina agenda establishes an aggressive strategy for job creation and economic growth. Results include: • Regularly ranking in the top for business climate. No. 1 ranking for business climate for four out of the past five years and 2005 Competitiveness Award from Site Selection magazine. “State of the Year” designation in 2005 and 2006 according to Southern Business & Development magazine. • Using smart, targeted, performance-based incentives. Through the One North Carolina Fund, the state has secured more than 19,000 new jobs and $3 billion in corporate investment since 2001. The state has also announced the award of 41 Job Development Investment Grants (JDIG) since 2003. The program has helped secure more than 14,000 jobs and more than $2 billion in investment. 13 of 138 Approved by USDOL June 29, 2007 • Maintaining No. 3 national ranking in biotechnology for the second straight year, according to Ernst & Young’s survey of the industry. • Capping the state gas tax to its current level to reduce burdensome fuel costs for consumers and businesses. • Increasing the minimum wage from $5.15 to $6.15 an hour. Governor Easley’s vision for North Carolina is to have a workforce prepared to meet the skill demands of its economic development strategy for recruitment and expansion of knowledge-based, high-wage jobs in the State. The One North Carolina Agenda is a call to the business community to support education and training of their employees. It is a call to current and future workers to seek and to acquire the education and training they will need to be productive members of the State’s workforce. More specifically, it is a call to the public workforce development system and its partners to meet the needs of North Carolina’s employers and citizens. The State’s workforce development system will focus on the following workforce investment priorities: 1. Build workers’ skills to match current and future workforce skills needs. North Carolina must continue to close the gap between the needs of employers for skilled workers and the supply of North Carolinians prepared to meet this need. This workforce investment priority will require continued support and funding for the State’s education and training system including public schools, community colleges, and universities. These institutions will require capacity to provide high quality workforce education and training that is responsive to business needs in order to create and sustain a pipeline of skilled citizens ready to work productively. 2. Target resources and services to workers who need transition assistance so that they may be prepared for and benefit from North Carolina’s changing economy and job opportunities. This workforce investment priority will require the following: • Expansion of incumbent worker training opportunities for businesses and their employees to increase worker productivity and to avert worker dislocations. • A comprehensive strategy for dislocated worker transition assistance to training, support services, and reemployment. • Targeting services and resources to new and existing worker pools that may require special education, training, and support services. These worker pools include disadvantaged youth (including youth dropouts), the (increasing) immigrant population, new labor market entrants, and low-wage workers. 3. Continue to build the unified public workforce development system (JobLink) to improve services to businesses and workers, and to impact North Carolina’s current and future economic growth. This workforce investment priority will require the following: • Expansion of the level of service integration among public workforce development agencies to improve services to business and industry. • Creative use of multiple funding streams and other funding sources to leverage and maximize services to workers and employers. • Marketing and communication strategies that effectively inform workers and employers of the services and benefits available to them. • A management and accountability structure within the unified system of multiple agency partners. 14 of 138 Approved by USDOL June 29, 2007 The Commission on Workforce Development, in partnership with state and regional partners will support the priorities above by focusing its work in five strategic areas over the next two years (2007-2009). These areas include: 1. Building strategic partnerships at the state and regional levels to leverage resources and assets. The State Board will continue to emphasize local board capacity building and increased service integration of the JobLink service delivery system in order to drive stronger alignments with economic development, and business and industry. 2. Redirecting system resources and assets to target limited investments to support areas of greater impact. 3. Using good data and information to more effectively develop policy, design programs, and utilize resources. 4. Building the workforce investment delivery system in a way that is easily recognizable and accessible to business and industry, workers, and other system customers. 5. Building regionally based alignments and collaborations that ensure broader cooperation in real labor markets. See Appendix 16. . The State Board (NC Commission on Workforce Development) is housed in the NC Department of Commerce, which is also responsible for the state level economic development divisions. The Commission, through its staff, provides collaboration in bringing together the expertise of public workforce development partners with the economic development community. Additionally, leaders from each of the public workforce agencies serve on the Commission. Through this state level collaboration, local workforce development partners receive assistance in aligning economic development efforts. Both the structure and organization of the State Board (NC Commission on Workforce Development) are set forth in North Carolina General Statute 143.B-438.10. The Board has 38 voting members, 32 of which are appointed by the Governor. The remaining six serve by virtue of their offices as agency heads. The Governor appoints the State Board chair from amongst the business and industry members. The Secretary of DOC (or his designee) serves as secretary to the State Board. Members are appointed to four-year terms, and serve at the pleasure of the Governor. The Chairperson has the authority to appoint committees and committee chairpersons. The Chairperson and those serving as committee chairpersons constitute the Executive Committee. The Executive Committee has the authority to act in the name of the full State Board as 15 of 138 Approved by USDOL June 29, 2007 required, between meetings. All Executive Committee actions reflecting policy decision(s) are subject to ratification by the full State Board. In addition to the Executive Committee, there are 4 standing committees. See text below. See text below. The State Board’s 38 members are appointed as follows: • By virtue of their offices, the following department and agency heads or their designees serve on the State Board: the Secretary of DHHS, the Chair of ESC, the Superintendent of Public Instruction, the President of NCCCS, the Commissioner of DOL, and the Secretary of DOC. • The Governor appoints 32 members as follows: • Six members representing public, postsecondary, and vocational education; • Two members representing community-based organizations; • Six members representing labor; and • Eighteen members representing business and industry. The identification of potential State Board members is the ultimate responsibility of the Governor, as administered by the State Office of Boards and Commissions. Recommendations for the 32 members appointed by the Governor are received in several ways. Organized labor is asked to make recommendations for the six members representing labor. Of the six members representing education, one serves by virtue of his/her position as president of the State Community Colleges Presidents’ Association. Recommendations for vocational education are normally received from the State Director for Carl D. Perkins Secondary Education Programs and the representatives must have experience with respect to youth activities. Any state agency or community-based organization may make recommendations for the two members who represent community-based organizations. Any group or individual may make recommendations for private sector appointments of persons who have an interest in North Carolina’s workforce development system. Representatives from key industry sectors (as identified by the Policy and Research Section, North Carolina DOC) are recruited to assure that the Board’s membership reflects a true picture of North Carolina, from both an economic development and a geographic perspective. The State Office of Boards and Commissions receives all recommendations but the final decision remains with the Governor. Eighteen members of the Commission must represent business and industry. North Carolina has made a concerted effort to assure that business leaders appointed to the Commission have both hiring authority as well as an understanding of the workforce development system. To 16 of 138 Approved by USDOL June 29, 2007 assure that ties with economic development are maintained and strengthened, members who represent the major employment sectors as well as regional economic development leaders are encouraged for Commission membership See text below. See text below. See text below. North Carolina General Statute assigns all functions required in 111(d) and 20 CFR 661.205. Board functions are defined in the General Statue to be as follows: 143B-438.12. Federal Program Administration (a) Federal Workforce Investment Act. – In accordance with the federal Workforce Investment Act, the Commission on Workforce Development shall develop a Five-Year Strategic Plan to be submitted to the U.S. Secretary of Labor. The Strategic Plan shall describe the workforce development activities to be undertaken in the State to implement the federal Workforce Investment Act and how special populations shall be served. (b) Other Workforce Grant Applications. – The Commission on Workforce Development may submit grant applications for workforce development initiatives and may manage the initiatives and demonstration projects. (1999-237, s. 16.15(b)). In addition to the functions described above, the Commission (State Board) also:1) reviews annually the measures taken by the State Board of Education concerning section 113(b)(14) of the Carl D. Perkins Vocational and Applied Technology Education Act, 2) designates Local Areas, and 3) reviews developments related to the statewide employment statistics system provided through Wagner-Peyser. A calendar is published annually of all meetings of the Commission. Meeting dates and locations are broadcast to the public via email distribution lists and via the DOC Web site. All meetings are held in a public location with handicapped access for people with disabilities. A public gallery is available to accommodate public attendees. 17 of 138 Approved by USDOL June 29, 2007 General information related to the Commission is available to the public at www.nccommerce.com/workforce. This Web site information explains the various functions of the Commission and lists its members. For those wishing to be added to the distribution list for meeting agenda and minutes, contact information is also available. A sign up sheet for same is available at each Commission meeting. Circumstances which constitute a conflict of interest are defined as any vote on matters (policy, procedure, grant or award) which has a direct bearing on services to be provided by that member or by an immediate family member, any organization which such member or an immediate family member directly or indirectly represents, any matter which would financially benefit such member or an immediate family member, or any organization such member or an immediate family member represents. (State Bylaws, Article IV, Section 5) Resources for the Commission on Workforce Development include support staff and travel reimbursement. See text below. See text below. The Governor established a state level workforce development management alliance (Alliance). This Alliance is charged with implementing plans, policies, and strategic initiatives that involve multiple agency programs and resources. The Alliance is comprised of leadership from the following state level entities: • Representative from the Office of the Governor, chair of the Alliance • Chairman of the Employment Security Commission • President of the Community College System • Secretary of the Department of Commerce • Secretary of the Department of Health and Human Services The State Economic Development and the Commission on Workforce Development (State Board) endorsed this structure as an effective means of implementing programs and policies that involve multiple agencies and programs, and of establishing clearer lines of communication 18 of 138 Approved by USDOL June 29, 2007 among state and local agencies within the JobLink network. The Alliance is expected to be the program management level line of communication between state and local agencies and the State Board, the State EDB, and the Governor’s office. See additional details concerning the Alliance in Section I of this plan. An additional approach to ensuring accountability, collaboration, and effectiveness of the services provided by workforce programs is a collaborative initiative to develop a new methodology for evaluating North Carolina's workforce development system. The cornerstone of this initiative is the redefining of workforce development as a process based on function rather than funding. To this end, a work group of partner agency representatives and local level staff developed this working definition: North Carolina’s workforce development system is a group of interacting, interrelated, and interdependent elements that strengthen, help to improve, and aid in the growth of people who work, people who are available to work, and the businesses and industries which employ them. Representatives from the following partner agencies are involved in this initiative: the Commission (State Board), the Division of Workforce Development, ESC, NCCCS, DOL, the UNC system, Division of Vocational Rehabilitation (DVR), the North Carolina Department of Public Instruction, the Division of Social Services (part of DHHS), the Division of Services for the Blind (part of DHHS), and the Department of Correction. A resource for establishing priorities and services for youth is a team already in place. Composed of representatives from Juvenile Justice, Community Colleges, WIA programs, and Social Services, this team attended the regional youth forum in Chicago in November 2004. With on-going dialogue and a focus on youth issues, this team plays a vital role in supporting the work of the State. Another team-oriented strategy that North Carolina will continue to use is that of the Local Area Youth Leads Team supported by the 24 Local Workforce Development Boards and Directors. Representing North Carolina’s 24 Youth Councils, this active group meets several times per year to identify strategies for improving coordination and collaboration. Each session is an opportunity for team members to share up-to-date information on best practices, state level updates, and emerging issues. This information-sharing includes input from those who serve youth. For example, Department of Public Instruction staff have met with the group to brief them on high school graduation requirements and dropout policies; additionally, DHHS staff met with the group to discuss opportunities for foster youth under the John Chafee Act. With plans to have Agency representatives continue to play vital parts in these meetings, North Carolina uses this group to help develop and strengthen its business connections. In addition, a Youth Leads listing has been established so that members can quickly and easily discuss questions or issues of the day. A two-day training event established around emerging issues and technical assistance needs to include the attendance of Youth Council Chairs and Workforce Development Board Directors is held annually. At the local level, North Carolina will encourage its Youth Councils to continue their work in developing broader roles within the community — roles beyond that of just WIA employment 19 of 138 Approved by USDOL June 29, 2007 and training — roles that embrace a youth development perspective and take into account a wide range of community issues. These far-reaching issues can have a huge impact on the success of youth, especially those at risk, in the labor market. One example of reaching out is reflected by local area Youth Councils including members from emerging and in-demand occupations. Further, North Carolina will continue to strengthen its expectations for youth professionals. The State supports its youth professionals to become even more knowledgeable about their local economies (current status, future projections, high-growth industries, and career paths); and encourages JobLink Career Center professionals to make connections to specialized youth programs for dropout youth who are using core services and can benefit from the addition of intensive services. As is proposed in the current re-authorization discussion, should Youth Councils (at the discretion of the local WDBs) become optional, North Carolina will work with its WDBs to promote an integrated youth agenda. Accordingly, North Carolina will support local boards that opt to retain their Youth Councils and task them with the broader community role Another resource to guide an integrated vision for serving youth in North Carolina is the NC Youth In Transition Collaborative. The NC Youth In Transition Collaborative (NCCYT) is a group of concerned representatives from public and private agencies who work together to promote successful transitions to adulthood for youth who are or have been served by public agencies. Many of these youth, without adequate supports, could easily become disconnected from opportunities, networks, supports and services that will enable these youth to thrive. The collaborative has established these givens about itself: • “We are all passionate about the youth we serve • No agency or organization alone can serve all youths' needs • There are overlaps and gaps in services • In order to better serve youth, we are here to work together to address the overlaps and gaps (e.g., interagency collaboration) • Focus is on prevention (i.e., we will keep asking ourselves "how can we work together to better support transition-age youth to become self-sufficient, healthy adults?")” Members of this collaborative include NC Administrative Office of the Courts, Communities in School, NC Department of Commerce, Concern of Durham, Greenhouse for Boys and Greenhouse for Girls, NC Department of Health and Human Services, NC Department of Juvenile Justice and Delinquency Prevention, NC Department of Public Instruction, Homeless Program, NC Division of Vocational Rehabilitation Services, Transition Services, Independent Living Resources, Inc, NC Division of Social Services, LINKS, NC Guardian ad Litem Program, North Carolina Community College System, SaySo Inc. (foster care advocates), and the NC Youth Advocacy and Involvement Office. ? During the last half of the 20th century, manufacturing was seen as the traditional source of “good jobs” for most workers in North Carolina. Even as far back as 1990, service-providing 20 of 138 Approved by USDOL June 29, 2007 industries were the dominant employers in the State. In that year, service industries accounted for over two-thirds of the annual average employment. During the last decade of the 20th century, economic fluctuations followed by structural adjustments in the “innovations and technology developments” sector transformed the state economy. These changes resulted in an increase in the dominance of the services sector in North Carolina’s labor market. As of 2006, service-providing industries accounted for almost four-fifths of total non-farm employment in the State. The average (mean) quarterly employment in North Carolina during 2nd quarter of 2006, was 3,956,273; this figure includes workers employed at firms subject to the State’s unemployment insurance (UI) statutes (i.e., “covered” employment). Appendix 3 shows the distribution of employing establishments, quarterly employment, and wages by industry sector. Over half of the State’s workers were employed in one of five industry sectors: Manufacturing (14.0 %), Health Care and Social Assistance (12.8%), Retail Trade (11.4%), and Education Services (9.1%), and Accommodation and Food Services (8.4%). However, the distribution of employing units (i.e., firms) by industry sector is markedly different: only two of the five dominant employing sectors, Retail Trade (13.6%) and Health Care (7.8%), are among the dominant establishment sectors. The other sectors with a majority of the State’s employing units include Construction (11.6%); Professional, Scientific, and Technical Services (9.7%); and Other Services (7.2%). When compared to the nation, the distribution of employers and workers within the State by sector is similar. One striking difference is that, for the United States as a whole, Manufacturing is the third largest sector (13.1%) in terms of employment, while in North Carolina it is the largest sector. Slightly less than half of the total North Carolina wages during 2006, Quarter 2, were paid in five employment sectors which included the State’s dominant sectors, Manufacturing (17.0%), Health Care (13.1%), Education (8.6%), and Retail Trade (7.5%). The fifth dominating sector, in terms of wage share, is Professional and Technical Services (6.4%). Even though only 4.3% of the total labor force works in this sector, it makes up 9.7% of all establishments. Across all industries, the average weekly wage was $690. Employees in Health Care, Education, and Construction industries had average wages close to the state’s average, while those in Retail Trade, Accommodation and Food Services, and Other Services received wages far below the State’s average. In contrast, employees in Manufacturing, Wholesale Trade, and Professional Services made weekly average wages that were at least $150 greater than the all industries’ weekly average. This pattern is similar to that seen when comparing sector wages at the national level. However, the State’s wages are, overall, about 88% of the nation’s; among North Carolina’s dominant sectors, the average weekly wage ratio (NC:US) ranges from .83 for Construction to .93 for Wholesale and Retail Trade. An accurate description of North Carolina’s economic base must consider the significant diversity present within the State. At the finest level of detail (at the six digit NAICS level) there are over 1,000 industry groups representing all the establishments and employers of North Carolina. Close to 500 of these industries report average quarterly employment of 1,000 or more workers. Considerable diversity remains in the State’s industrial mix even when it is narrowed down to high employment establishments. Twenty-eight industries had quarterly average employment of 20,000 or more during 2nd quarter of 2006. This short list includes industries with average weekly pay ranging from $210 (Limited-service restaurants) to $1,335 (Managing offices). These industries also vary in terms of establishment sizes, ranging from relatively small operations with an average of 5 employees (New Single-family housing construction) to those with over 1,000 workers (General Medical and Surgical Hospitals). The diversity of North Carolina’s economic base is also geographic. Appendix 4 gives maps of the State’s 100 counties. The maps are coded by dominant industry sector, with the top map showing the sector that accounts for the largest share of employment in the county during 2006, 21 of 138 Approved by USDOL June 29, 2007 Quarter 2, and bottom map showing the industry sector with the largest share of total wages paid during the same period. The continued significance of manufacturing in North Carolina is clearly seen in more than half the counties. The industrial shifts that took place during the latter half of the 20th century and the early years of the 21st century are expected to continue over the next several years. These changes will continue to impact the State's industrial structure and occupational employment patterns. North Carolina’s industry employment is expected to reach 4.8 million in 2014. This represents an increase of almost 700,000 jobs from employment levels in 2004. North Carolina will continue to experience both growth and dominance within its service providing industries and declines within natural resources and mining, as well as manufacturing industries. The State's Manufacturing super sector will still be a major industrial force but will continue to be impacted by job losses. By 2014, North Carolina's service providing industries will comprise 76% of total employment, goods producing industries are expected to decrease to 17%, while self-employment will continue to comprise about 7% of all employment. More than half of all employment will be concentrated in three service providing super sectors: Education and Health (21%); Trade, Transportation and Utilities (18%); and Professional and Business Services (12%). North Carolina's Goods Producing industries are projected to experience an increase of 4,300 jobs. Employment within the Manufacturing super sector is projected to decline by more than 40,600 jobs. These job losses will continue to be dominated by losses in Textiles; Apparel; Furniture and Related Products; and Beverage and Tobacco Products. However, North Carolina will experience expansion in other Manufacturing sub sectors which will help to offset some of these losses. These growing Manufacturing sub sectors include industries which produce Chemicals; Fabricated Metal Products; Food; Transportation Equipment; Wood Products; Electrical Equipment; and Primary Metal Manufacturing. Within the other Goods Producing industries, North Carolina will experience employment declines in its Natural Resources and Mining super sector due to job losses within the Crop and Animal, Forestry and Logging production industries. Construction industries will continue to grow and add more than 45,400 jobs. This growth will be due to significant expansion within the Specialty Trade Contractors, and moderate expansion within both Heavy and Civil Engineering Construction; and Construction of Buildings. North Carolina's Service Providing industries are expected to expand to over 3.7 million jobs by 2014, an increase of more than 664,300 jobs over 2004 employment levels. Employment growth within the Education and Health Services industries will outpace other industrial super sectors. This super sector is expected to add more than 232,300 jobs and includes several of the State's significant growth industries: Educational Services; Ambulatory Health Care Services; Hospitals; Nursing and Residential Care Facilities; and Social Assistance Industries. The Trade, Transportation and Utilities super sector will add more than 123,100 jobs, with employment growth expected in 22 of the industry's sub sectors. Employment growth within this super sector will be dominated by growth in General Merchandise Stores; Truck Transportation; Merchant Wholesalers of Durable and Non-Durable Goods; Motor Vehicle and Parts Dealers; and Miscellaneous Store Retailers. 22 of 138 Approved by USDOL June 29, 2007 Natural Resources and Mining 16,840 16,360 -480 -0.1 Construction 218,470 263,880 45,410 6.6 Manufacturing 578,710 538,120 -40,590 -5.9 Trade, Transportation, and Utilities 749,160 872,280 123,120 17.8 Information 72,370 83,420 11,050 1.6 Financial Activities 188,060 217,060 29,000 4.2 Professional and Business Services 430,540 567,650 137,110 19.9 Education and Health Services 778,960 1,011,280 232,320 33.6 Leisure and Hospitality 348,930 428,640 79,710 11.5 Other Services (Except Government 155,450 181,560 26,110 3.8 Government 264,000 289,930 25,930 3.8 Over 137,000 jobs are expected to be added to the Professional and Business Services super sector. This includes North Carolina's fastest growing sub sector: Administrative and Support Services, as well as expansion in Professional, Scientific, and Technical Services; and Management of Companies and Enterprises. The State will continue to experience growth in the Leisure and Hospitality super sector, with the addition of 80,000 jobs. This increase will be largely impacted by the continued growth in Accommodation and Food Services. By 2014, the Financial Activities super sector is expected to expand by 29,000 jobs. This will be due to significant growth in Credit Intermediation and Related Activities; Insurance Carriers and Related Activities; and Real Estate. Growth within the Government super sector will be impacted by employment growth in both local and State government. Employment increases within the Other Services super sector will be driven by growth in the Religious, Grant-making, Civic, Professional, and Similar Organizations sub sector. North Carolina's smallest service-providing super sector, Information, will experience job growth due to employment increases within Publishing industries; Internet Service Providers, Web Search Portals, and Data Processing Services. During the last several years, North Carolina's occupational employment patterns have been impacted by changes in both its industrial structure and workforce composition. Over the next several years, these changes will continue to be driven by both occupational growth (new jobs) and replacement needs (turnover), with replacement needs outpacing occupational growth. By 2014, over two-thirds of the State's occupational employment will be concentrated in eight occupational groups: Office and Administrative Support Occupations; Sales and Related Occupations; Production Occupations; Food Preparation and Serving Related Occupations; Transportation and Material Moving Occupations; Education, Training, and Library Occupations; Management Occupations; and Healthcare Practitioners and Technical Occupations. Over the next several years, North Carolina is expected to continue to experience declines within its traditional manufacturing industries and related occupations. At the same time, the State will continue to experience growth within its service providing industries and related occupations. These industrial and occupational shifts will continue to impact North Carolina's economic landscape and its workforce development strategies. 23 of 138 Approved by USDOL June 29, 2007 (Appendices 5 – 10). ? As North Carolina's economy has shifted from goods producing to service providing, demand for skilled workers has been on the rise. Demands for skilled workers span a diverse set of industrial sectors and occupational groupings. In 2004, more than 300 of the State's 712 occupations required at least some postsecondary vocational training. In 2004, the number of skilled jobs was about 1.1 million and is expected to grow to 1.4 million by 2014. Over the next several years, employment growth and replacement needs will drive North Carolina's occupational employment patterns. Several of the State's skilled occupations are expected to increase or maintain employment levels. Ten year projections, spanning the decade between 2004 and 2014, indicate that one third of all job growth will come from employment expansion in 282 skilled occupations. By 2014, 29% of the State's workforce will be employed in skilled occupations. Although these skilled occupations span 18 different occupational groups, more than two-thirds of them are concentrated in six occupational groupings: Office and Administrative Support Occupations; Sales and Related Occupations; Production Occupations; Transportation and Material Moving Occupations; Education, Training, and Library Occupations; Management Occupations; and Healthcare Practitioners and Technical Occupations. Demand for workers in these skilled occupations and related industries are expected to increase over the next several years, thus requiring additional workers with advanced education and training. Through the provision of targeted training programs, North Carolina's workforce development system can serve as the foundation for helping to meet the growing demands for skilled workers. (Appendices 11 – 12). One hundred and sixty occupations are identified as critical to North Carolina’s economy. The “critical list” includes 22 major occupational groups, a diverse group that spans a variety of education/training levels and major occupational groups. Table IV D, below, shows the distribution of critical occupations by major group. With the exception of Farming, Fishing, and Forestry, all of the major groups are represented. This majority representation reflects the current and future diversity of North Carolina’s economy. 24 of 138 Approved by USDOL June 29, 2007 Management 7 Business and Financial Operations 8 Computer and Mathematical 6 Architecture and Engineering 2 Life, Physical, and Social Science 2 Community and Social Service 4 Legal 4 Education, Training, and Library 6 Arts, Design, Entertainment, Sports, and Media 1 Healthcare Practitioners and Technical 10 Healthcare Support 5 Protective Service 6 Food Preparation and Serving 14 Building and Grounds Cleaning and Maintenance 7 Personal Care and Service 6 Sales and Related 11 Office and Administrative Support 20 Farming, Fishing, and Forestry 0 Construction and Extraction 14 Installation, Maintenance, and Repair 9 Production 8 Transportation and Materials Moving 10 160 Occupational groups that are particularly critical to the State include the following: • Office and administrative support, • Healthcare practitioners, technicians, and support, • Food preparation and serving, • Construction and extraction, • Sales and related, and • Transportation and materials moving. The critical occupations within the above six groups encompass a variety of training/education and/or skill needs. In sum, the occupations that are critical to North Carolina's current and future growth reflect the state’s economic diversity and indicate a need for a workforce that can meet the demand for a variety of different types of jobs. Overall, 73 different skill, knowledge, and ability dimensions were important or very important for at least one of the State’s critical occupations. The wide range of dimensions relevant to the performance of job duties for the critical occupations highlights the diversity of the North Carolina labor market and economy, reinforcing the state’s need for a workforce consisting of individuals with varied skills. Many of the level requirements for the critical occupations’ most important worker requirements are in the moderate or high categories, an indication of a current and continuing need for workers with investments in education and training. Despite the high level of variation in the skill, knowledge, and ability requirements of the State’s critical occupations, some commonalities are apparent. First, skills, knowledge, and abilities related to Communication are required for almost all of the critical occupations; 133 of the 160 25 of 138 Approved by USDOL June 29, 2007 critical occupations had ratings of important or very important for at least one dimension grouped in this type. Within the Communication group, dimensions related to oral communication are the most common, followed by reading, and then by writing. The second most common type of skill, knowledge, and ability dimensions required by the State’s critical occupations is Interpersonal; 112 of the 160 critical occupations had ratings of important or very important for at least one dimension grouped in this type. The most commonly required dimension is Customer Service, followed by the dimension related to Teaching and Learning. Close behind the Interpersonal type in prevalence were the dimension in the Process and Problem-Solving group, where 61% of the critical occupations had an important or very important requirement. Within this type, the emphasis, for the critical occupations, is on dimension related to Problem Solving (i.e., Critical Thinking, Judgment, and Decision-Making). Significant portions of the critical occupations have requirements in the other types as well. More than half of these occupations have an important or very important rating for at least one dimension within the Business, Management, and Production group while exactly half have this importance rating for dimension within the Mathematics and Science group. More than two-fifths of the critical occupations require at least one of the dimension within the Technology Use, Maintenance, and Design group, with an emphasis on use and maintenance of technology rather than design. Finally, 73 of the critical occupations have at least one requirement for a Specialty Knowledge. (Appendix 13). ? North Carolina’s current working age population, ages16 to 64, is estimated to be 5.9 million. It is projected to grow approximately 10% to nearly 6.5 million by the year 2014. This projected growth (see Table IV F, below) will provide a potential 612,073 additional workforce members, 39% of which are of prime working ages, 25 to 54 years old. North Carolina is also likely to see an increase of both older and younger workers. Age 2006 Population Estimates* 2014 Population Projections* Net Change Expected Growth Rate 16-24 1,159,598 1,294,242 134,644 12% 25-54 3,776,213 4,015,961 239,748 6% 55-64 942,014 1,179,695 237,681 25% Total 5,877,825 6,489,898 612,073 10% *Source: North Carolina State Demographer available at http://demog.state.nc.us The actual number of workers in 2014 will depend on future labor force participation rates, which in turn depend on a myriad of factors such as economic and cultural conditions. Applying current labor force participation rates to the above population growth projections provides an estimate of the workforce in 20142. See Table IV FF. This estimate is presented with the caveat that future participation rates will likely not be the same as they are in 2006. For example, participation rates of older workers may change depending on public perception of the stability of Social Security. In an attempt to produce a more robust estimate of the future workforce, labor force participation rates were calculated for North Carolina for the most recent year available, 2006. 26 of 138 Approved by USDOL June 29, 2007 Age 2014 Population Projections1 2006 Labor Force2 2006 Labor Force Participation Rate2 Estimated Workforce 2014 Net Change 16-24 1,294,242 715,472 61.7% 798,547 83,075 25-54 4,015,961 3,145,585 83.3% 3,345,295 199,710 55-64 1,179,695 559,556 59.4% 700,738 141,182 Total 6,489,898 4,420,613 74.6% 4,844,580 423,967 1 North Carolina State Demographer available at http://demog.state.nc.us 2 As reported by the American Community Survey It is estimated that 424,000 workers will be added to North Carolina’s workforce by 2014, and that the total workforce between the ages of 16 and 64 will increase to just under 5 million – 3.3 million of prime working age. The number of both younger and older workers will increase by 224,000. The numbers of older workers are projected to increase by roughly 25%. ? North Carolina is one of the fastest growing states, according to the Census Bureau’s special report, “Cumulative Estimates of Population Change for the United States, Regions, States and Puerto Rico and Region and State Rankings: April 1, 2000 to July 1, 2006”3, and was sixth in the nation in terms of net growth. Nearly 500,000 working age people were added to North Carolina’s population between 2000 and 2006 (see Table IV G, below). North Carolina has experienced population growth rates above the national average throughout the 1990s and early 2000s as well as consistently large positive annual net migration rates4; therefore it is projected that this trend will continue. Available at http://www.census.gov/. 4 See graphs of population growth rates and migration rates under State Highlights at http://demog.state.nc.us/. 27 of 138 Approved by USDOL June 29, 2007 299,398,4 84 281,424,60 2 17,973,88 2 6.4 (X) (X) (X) (X) 54,741,35 3 53,594,78 4 1,146,56 9 2.1 4 4 4 4 66,217,73 6 64,395,19 4 1,822,54 2 2.8 3 2 3 3 109,083,7 52 100,235,8 46 8,847,90 6 8.8 1 1 1 2 69,355,64 3 63,198,77 8 6,156,86 5 9.7 2 3 2 1 .Alabama 4,599,030 4,447,351 151,679 3.4 23 23 27 34 .Alaska 670,053 626,931 43,122 6.9 47 48 42 17 .Arizona 6,166,318 5,130,632 1,035,68 6 20.2 16 20 5 2 .Arkansas 2,810,872 2,673,398 137,474 5.1 32 33 28 22 .California 36,457,54 9 33,871,65 3 2,585,89 6 7.6 1 1 2 15 .Colorado 4,753,377 4,302,015 451,362 10.5 22 24 10 8 .Connecticut 3,504,809 3,405,602 99,207 2.9 29 29 32 37 .Delaware 853,476 783,600 69,876 8.9 45 45 37 10 .District of Columbia 581,530 572,059 9,471 1.7 50 50 49 44 .Florida 18,089,88 8 15,982,82 4 2,107,06 4 13.2 4 4 3 6 .Georgia 9,363,941 8,186,816 1,177,12 5 14.4 9 10 4 3 .Hawaii 1,285,498 1,211,537 73,961 6.1 42 42 36 20 .Idaho 1,466,465 1,293,956 172,509 13.3 39 39 23 5 .Illinois 12,831,97 0 12,419,64 7 412,323 3.3 5 5 11 36 .Indiana 6,313,520 6,080,517 233,003 3.8 15 14 21 28 .Iowa 2,982,085 2,926,382 55,703 1.9 30 30 40 41 .Kansas 2,764,075 2,688,824 75,251 2.8 33 32 35 38 .Kentucky 4,206,074 4,042,285 163,789 4.1 26 25 24 27 .Louisiana 4,287,768 4,468,958 -181,190 -4.1 25 22 51 51 .Maine 1,321,574 1,274,923 46,651 3.7 40 40 41 31 .Maryland 5,615,727 5,296,506 319,221 6.0 19 19 14 21 .Massachusett s 6,437,193 6,349,105 88,088 1.4 13 13 33 46 .Michigan 10,095,64 3 9,938,480 157,163 1.6 8 8 26 45 .Minnesota 5,167,101 4,919,492 247,609 5.0 21 21 19 23 .Mississippi 2,910,540 2,844,656 65,884 2.3 31 31 38 40 .Missouri 5,842,713 5,596,683 246,030 4.4 18 17 20 25 .Montana 944,632 902,195 42,437 4.7 44 44 43 24 .Nebraska 1,768,331 1,711,265 57,066 3.3 38 38 39 35 .Nevada 2,495,529 1,998,257 497,272 24.9 35 35 9 1 .New Hampshire 1,314,895 1,235,786 79,109 6.4 41 41 34 18 28 of 138 Approved by USDOL June 29, 2007 .New Jersey 8,724,560 8,414,347 310,213 3.7 11 9 16 30 .New Mexico 1,954,599 1,819,046 135,553 7.5 36 36 29 16 .New York 19,306,18 3 18,976,82 1 329,362 1.7 3 3 13 43 .North Carolina 8,856,505 8,046,491 810,014 10.1 10 11 6 9 .North Dakota 635,867 642,200 -6,333 -1.0 48 47 50 50 .Ohio 11,478,00 6 11,353,14 5 124,861 1.1 7 7 31 48 .Oklahoma 3,579,212 3,450,654 128,558 3.7 28 27 30 29 .Oregon 3,700,758 3,421,436 279,322 8.2 27 28 18 12 .Pennsylvania 12,440,62 1 12,281,05 4 159,567 1.3 6 6 25 47 .Rhode Island 1,067,610 1,048,319 19,291 1.8 43 43 46 42 .South Carolina 4,321,249 4,011,816 309,433 7.7 24 26 17 14 .South Dakota 781,919 754,844 27,075 3.6 46 46 44 33 .Tennessee 6,038,803 5,689,262 349,541 6.1 17 16 12 19 .Texas 23,507,78 3 20,851,79 0 2,655,99 3 12.7 2 2 1 7 .Utah 2,550,063 2,233,198 316,865 14.2 34 34 15 4 .Vermont 623,908 608,827 15,081 2.5 49 49 47 39 .Virginia 7,642,884 7,079,030 563,854 8.0 12 12 7 13 .Washington 6,395,798 5,894,140 501,658 8.5 14 15 8 11 .West Virginia 1,818,470 1,808,350 10,120 0.6 37 37 48 49 .Wisconsin 5,556,506 5,363,715 192,791 3.6 20 18 22 32 .Wyoming 515,004 493,782 21,222 4.3 51 51 45 26 3,927,776 3,808,603 119,173 3.1 (X) (X) (X) (X) Note: The April 1, 2000 Population Estimates base reflects changes to the Census 2000 population from the Count Question Resolution program and geographic program revisions. (X) Not applicable. See Geographic Terms and Definitions at http://www.census.gov/popest/geographic/ for a list of the states that are included in each region. Table IV G: Cumulative Estimates of Population Change for the United States, Regions, States and Puerto Rico and Region and State Rankings: April 1, 2000 to July 1, 2006 (NST-EST2006-02) Source: Population Division, U.S. Census Bureau Release Date: December 22, 2006 As a result of migration, North Carolina’s labor pool is becoming more diverse (Appendix 14). The net migration rates are positive for each of the workforce age categories when broken out by race, meaning that more people of all ages and races are moving into North Carolina than are moving out. Migration increases the diversity of North Carolina as more people of color move in and stay. For example, nearly 20% of people of current Hispanic and “Other/Multiple Races” can be accounted for by net migration, as well as 7.9% of the current Asian/Pacific Islander population. In 2005, the Hispanic population accounted for nearly 5% of North Carolina’s total working age population, up from 1.4% in 1995. While a smaller portion of Hispanics live in North Carolina (5.6% of the total population) relative to the nation as a whole (13.8%), the presence of this population is a relatively new phenomenon that presents challenges to the State’s education and training systems in addressing the language barriers. The educational levels and occupations of migrants are presented in Table IV GG, below. The net migration rates are positive for each of the educational categories and occupations, meaning that more people of all educational levels and occupations are moving in than are moving out. It appears that North Carolina has benefited from the migration, with increases in the numbers of college educated in the available labor pool, and increased numbers of people working in Professional and related occupations. 29 of 138 Approved by USDOL June 29, 2007 Less than High School 182,289 155,526 26,763 High School 216,255 118,852 97,403 Some College/Associate Degree 283,185 158,341 124,844 Bachelor's Degree or higher 272,352 167,403 104,949 Management, business and financial operations 102,558 65,875 36,683 Professional and related 175,094 99,432 75,662 Healthcare support 13,849 7,644 6,205 Protective support 11,876 10,293 1,583 Food preparation and serving 48,295 21,591 26,704 Building and grounds cleaning and maintenance 22,939 9,239 13,700 Personal care and service 18,861 10,799 8,062 Sales and related 86,556 51,648 34,908 Office and administrative support 107,606 61,173 46,433 Farming, fishing, and forestry 7,826 2,323 5,503 Construction and extraction 56,739 19,672 37,067 Installation, maintenance and repair 37,005 16,955 20,050 Production 71,006 27,208 43,798 Transportation and Materials Moving 41,115 23,545 17,570 Military-Specific 34,093 12,868 21,225 Source: 2000 Decennial Census, 5% Public Use Micro-Sample The skill needs of jobs in the current and future labor market are varied in type, but similar in terms of requiring moderate or high levels of the necessary skills, knowledge, and abilities. Skills are defined as the ability to produce solutions. In order to identify skills gaps in the North Carolina labor market in the next decade, occupations are analyzed using the Occupational Information Network (O*NET). O*NET divides skills into six groups: basic skills ( developed capacities that facilitate learning or the more rapid acquisition of knowledge), complex problems solving skills (developed capacities used to solve novel, ill-defined problems in complex, real-world settings), resource management skills (developed capacities used to allocate resources efficiently), social skills (developed capacities used to work with people to achieve goals), system skills (devolved capacities used to understand, monitor, and improve socio-technical systems), and technical skills (developed capacities used to design, set-up, operate, and correct malfunctions involving application of machines or technological systems). 30 of 138 Approved by USDOL June 29, 2007 Reading Comprehension 100.0 Basic Active Listening 97.1 Basic Speaking 94.3 Basic Writing 91.4 Basic Critical Thinking 88.6 Basic Active Learning 85.7 Basic Instructing 82.9 Social Learning Strategies 80.0 Basic Monitoring 77.1 Basic Coordination 74.3 Social As shown in the preceding table (Table IV H) most jobs in North Carolina require basic skills. Of the ten skills that are projected to be in the greatest demand over the next decade, eight of them belong to the basic skills group. The remaining two, Instructing and Coordination belong to the social skills group. Skill gaps change as the education and training requirements change. Occupations that require post secondary vocational training mostly have a similar major skill gap as the general population. However, time management and social perceptiveness, become more important and critical thinking and instructing others decreases. Generally speaking, the higher the level of education the greater the need for critical thinking and active listening. Regardless of training, most jobs in North Carolina require reading, writing, speaking, active listening and critical thinking. Knowledge is a learned set of facts and principles that are required by many different occupations. Across the state, high levels of specific knowledge such as Customer and Personal Services; English Language; Education and Training; Mathematics; and Psychology will continue to be in high demand over the next decade (Table IV HH) Customer and Personal Service 100.0 English Language 97.0 Education and Training 93.9 Mathematics 90.9 Psychology 87.9 Sales and Marketing 84.8 Clerical 81.8 Administration and Management 78.8 Computers and Electronics 75.8 Medicine and Dentistry 72.7 Mechanical 69.7 Therapy and Counseling 66.7 Economics and Accounting 63.6 Design 60.6 Law, Government and Jurisprudence 57.6 31 of 138 Approved by USDOL June 29, 2007 Occupations that require less than a year of on-the-job training, work experience in a related occupation, vocational training, or an Associate’s Degree are expected to experience a greater need for knowledge in Customer and Personal Service. Occupations that need longer term on-the- job training, or work experience in a related occupation are also predicted to need more knowledge in Sales and Marketing, Clerical, and the English Language. In the Building and Construction occupations, a major skills gap will exist in Mechanical, Customer and Personal Service knowledge. With the growth in Health Care and Educational Services occupations, many of which require an Associate’s Degree, there will be a large knowledge gap in Psychology, Medicine and Dentistry, English Language, Clerical, Computers and Electronics, and Education and Training. It is predicted that there will be an increased need for more people trained in Education and Training techniques for those occupations that require a Bachelor's Degree, a Master's Degree, or a Doctoral Degree. Occupations that demand Bachelor's or higher degrees, plus work experience, will show a growing gap in Administration and Management, and English Language knowledge. Among the areas of technical knowledge that require a Bachelors Degree or higher will be Chemistry, Computers and Electronics, Customer and Personal Service, Education and Training, English Language, Mathematics, Medicine and Dentistry, Psychology, and Therapy and Counseling. Skills and knowledge requirements are worker characteristics, where as work activities involve occupational characteristics. O*NET identifies generalized work activities (GWA) which summarize tasks that may be performed within a group of occupations. In general, future jobs will require people to have the ability to work with others, communicate and adapt to changing situations. The following table (Table IV HHH) reports what is projected to be the most common GWA’s. Establishing and maintaining interpersonal relationships 100.0 Getting information needed to do the job 97.6 Communicating with supervisors, peers or subordinates 95.1 Updating and using job-relevant knowledge 92.7 Organizing, planning and prioritizing work. 90.2 Identifying objects, actions, and events 87.8 Making decisions and solving problems 85.4 Monitoring processes, materials or surroundings 82.9 Working directly with the public 80.5 Handling and moving objects 78.0 Processing information 75.6 Assisting and caring for others 73.2 Communicating with persons outside the organizations 70.7 Performing general physical activities 68.3 Resolving conflicts and negotiating with others 65.9 See text below. 32 of 138 Approved by USDOL June 29, 2007 These are critical workforce development issues in North Carolina: • Skill gaps between North Carolina’s current workforce versus current and future workforce needs in the business and industrial base; • Adequate funding and support of the State’s education and training infrastructure — funding sufficient to meet current and future demands for workers with requisite skills; • Education, training, and related needs of critical North Carolina labor pools, including dislocated workers, low skilled immigrant workers, older youth, high school dropouts, low-wage workers, and low-skilled incumbent workers; • Impending baby-boom retirements and the potential skill gaps resulting from retirements; and • The fast, efficient ability of the State’s public workforce development system to improve and to change in order to meet rapidly evolving community workforce and economic needs. North Carolina will continue to grow and improve its JobLink Career Center system as the primary method of forging broad-based partnerships in its workforce development system. The NC Commission on Workforce Development (State Board) has a certification methodology for the JobLink system that includes standards and funding incentives from Title I (funding) for Joblink Career Centers to build and expand their services to customers, and to expand partnerships within their communities. The Commission has established standards for local Workforce Development Boards scheduled to take effect July 1, 2007. These standards include expectations for establishing stronger alignments with business and industry, providing good labor market information to business and industry, implementing regional collaborative strategies, effective and efficient use of resources, and ensuring that the local JobLink system and its multiple agencies and programs are providing services that are responsive to the needs of workers and employers. North Carolina uses WIA Title I funds to leverage Trade Adjustment Assistance (TAA) and WIA National Emergency Grant (NEG) funds to expand capacity and services to dislocated workers. The State will continue to use WIA Title I statewide activities funds to provide incentives for system expansion and improvement, to expand capacity to serve the business community, to support demonstration projects and test service innovations, and to leverage other state and local level funding for workforce development activities. This leveraging will include supporting activities that include partnerships with faith-based, community-based, and non-profit organizations. By the summer of 2007, the Commission will use WIA Title 1 statewide activities funds to initiate competitive grant programs that will incent and support movement to regionally based planning and resource utilization by local Workforce Boards, and to incent and support the implementation of regionally based sector strategies that are responsive to the needs of high growth occupations. 33 of 138 Approved by USDOL June 29, 2007 North Carolina recognizes that transforming its workforce investment system at the state and local levels to one that is demand-driven, cost efficient with limited duplication, and seamless for workers and employers will require a state level governance, accountability, and management structure that is clearly defined with a strong communication and operational alignment. In Section I B, the State described the Governor’s establishment of the Workforce Alliance. The Alliance will strengthen the State’s ability to implement policy and plans, to make decisions that involve multiple agencies and programs, and to maximize the use of multiple funding sources to impact workforce and economic development. The State intends to build the alignment and communication between the State EDB, the Commission on Workforce Development, and the Alliance in a way that promotes a common understanding and vision for workforce and economic development in North Carolina. This state level collaboration is expected to lead the effort in planning and implementing workforce strategies that address North Carolina’s priorities and the national strategic priorities. . Employing a four-pronged approach, Governor Easley’s economic development policies capitalize on the strengths of North Carolina’s economic base: 1. Targeting economic development and business retention efforts to companies in industries with growth potential and that provide a good quality of life for North Carolinians. 2. Providing tax and financial incentives to new and existing companies that provide good wages and quality of life for North Carolinians. 3. Providing state-of-the-art public/private partnerships for training and knowledge transfer for high-growth industry clusters. 4. Targeting additional resources to better serve North Carolinians who are most in need. 1. Target economic development and business retention efforts to companies in industries with growth potential and that provide a good quality of life for North Carolinians. The EDB serves as the State’s top economic development policy advisory board and is responsible for recommending economic development policy to the Governor. North Carolina has identified the following target industries: Growth Industries These are growth industries or industries that provide synergy to an industry cluster. • Industrial Chemicals, Plastics and Rubbers, • Transportation (including manufacturing of aircraft engines, boat building, automotive components, aerospace), 34 of 138 Approved by USDOL June 29, 2007 • IT/Telecommunications (including communications equipment, electronics, semiconductors, and software), • Industrial/electrical machinery, • Life Sciences/Biotechnology/Pharmaceuticals, • Military • Financial and Business Services, and • Health Care Services. Maintenance Industries These are industry sectors within declining industries that continue to show promise and growth. • Textiles/Apparel/Hosiery (for example, the manufacturing of non-wovens and technical performance-based textiles), • Forest Products/Agribusiness (for example, specialty crops and enhancement of products, which would include recycling industries), and • Furnishings (for example, higher-end furniture and other niches). The High Point International Home Furnishings Market applied for and has received the International Buyers Program designation by the U.S. Department of Commerce. This designation means that the U.S. Department of Commerce will assist in a worldwide recruiting effort to bring in more international buyers to the 2008 market. • The Furniture IST has sent a survey to all furniture manufacturers seeking their input on current trends and needs. This survey data will be compiled into a database by Editors At Large in Winston-Salem. The PRSP staff of the Department of Commerce will then analyze the data for policy recommendations and potential growth opportunities. Since the release of EDB’s Strategic Plan (Appendix 15), the Motorsports industry has been added to the list of target industries. Additionally, the State Board of Science and Technology (see below) has identified Nanotechnology (the ability to measure, see, and assemble objects on the scale of atoms and molecules) as a priority for North Carolina’s research, development, and commercial sectors. As materials science, a basic research and development technology, and an advanced manufacturing discipline, nanotechnology will have significant impact on virtually every commercial sector in the State. In the spring of 2005, the State Advisor for Science and Technology, the Department of Commerce, and the North Carolina Board of Science and Technology formed the Governor’s Task Force on Nanotechnology and North Carolina’s Economy. Composed of twenty-eight members and broadly representing business, academia, and the public sector from across the state, the Task Force’s charge was to: Two approaches underlie that roadmap: 1. Strengthen North Carolina’s core economic development approach to advancing technology-based economic development. 2. Strengthen the building blocks within that core approach that focus specifically on nanotechnology. Released in 2006, the roadmap is a call to action for North Carolina’s political and policy leaders, industry, research institutions, educators, and the public to: 35 of 138 Approved by USDOL June 29, 2007 • Increase our ability to innovate; • Increase the levels of collaboration between our companies and R&D centers; • Develop a well-educated and trained workforce; • Provide a supportive public and political policy environment; and, Diversify our technology cluster portfolio to include nanotechnology. In 2006, additions were made to the 2004 Strategic Plan to focus on such growth opportunities as entrepreneurship, a new State Port, military growth, and sustainable economic development. • Entrepreneurship was identified by the NC Secretary of Commerce as a priority item and a $5 million grant was given to the UNC System by the Kauffman Foundation for Entrepreneurship education in the state over five years. • The North Carolina State Ports Authority is planning a world class container terminal to be completed over 8-10 years, the North Carolina International Port. • North Carolina will take advantage of the anticipated relocation of two military headquarters organizations and additional troops at Fort Bragg/Pope Air Force Base. In 2005, the NC Military Business Center produced a Gap Analysis. • In order to focus on Sustainable Economies and Sustainable Economic Development, the NC Department of Commerce hosted a Sustainable Business Forum in June 2006 and is working with the NC Sustainable Business Council. With the passage of North Carolina’s 2006 budget, a bipartisan coalition of North Carolina lawmakers established the One North Carolina Small Business Program. The program broadens and realigns the existing One North Carolina Program to include aggressive and comprehensive financial support for entrepreneurial growth companies within the state. Lawmakers created the program in response to a realization that one of North Carolina’s greatest economic development opportunities is in bridging the gap between its internationally regarded innovation capacity and the creation of small businesses that can commercialize it. The program recognizes the importance of entrepreneurial growth companies to the state’s economy and places efforts to enhance them on equal footing with efforts focused on traditional recruiting and expansion. It does so by making North Carolina small businesses eligible for state matching grants to support research projects funded under the federal Small Business Innovation Research (SBIR) and the Small Business Technology Transfer (STTR) programs, which provide funding for small businesses to commercialize their technologies. Since the program’s launch in January 2006, the Board of Science and Technology has provided more than $3.5 million in matching awards to 46 small businesses throughout North Carolina. Industry Sector Teams are staffed and led by the Department of Commerce, and are comprised of personnel from its various departments as well as from NCCCS, Universities, Regional Partnerships, and local business representatives along with representatives from several other organizations. The goal of these enterprise teams is to develop marketing strategies, to recruit new companies to North Carolina, to support existing and entrepreneurial businesses, and to create and maintain favorable business environments within the State’s cluster industries. The Industry Sector SWAT Team, comprised of a small core team from across the NC Department of Commerce, provides oversight and support to the Industry Sector Teams and ensures the overall collaborative success of the initiative. Additional agencies supporting research, development, and industrial sectors critical to the future of North Carolina’s economy include the following: • The North Carolina Board of Science and Technology, a Division of DOC - the mission of the Board is to advise and make recommendations to the Governor, the General 36 of 138 Approved by USDOL June 29, 2007 Assembly, the Secretary of DOC, and the EDB on the role of science and technology in the economic growth and development of North Carolina. In pursuit of that mission, it also encourages, promotes, and supports scientific, engineering, and industrial research applications in North Carolina, investigates new areas of emerging science and technology, and conducts studies on the competitiveness of state industry and research institutions in these fields. • The North Carolina Biotechnology Center - a private, non-profit corporation created by the State in 1984 and supported by the General Assembly. The Biotechnology Center's mission5 is to provide long-term economic and societal benefits to North Carolina through support of biotechnology research, business and education statewide. A 65- member staff works toward six goals: • Strengthen North Carolina's academic and industrial research capabilities • Foster North Carolina's biotechnology industrial development • Enhance the teaching and workforce-training capabilities of North Carolina's educational institutions • Work with business, government and academia to move biotechnology from research to commercialization in North Carolina • Inform North Carolinians about the science, applications, benefits and issues of biotechnology • Establish North Carolina as a preeminent international location for the biotechnology industry 2. Provide tax and financial incentives to new and existing companies that provide good wages and quality of life for North Carolinians. Credits for Growing Businesses (Article 3J Credits) Article 3J provides three types of tax credits to eligible taxpayers that undertake qualifying activities in North Carolina: 1) Credit for Creating Jobs, 2) Credit for Investing in Business Property, and 3) Credit for Investment in Real Property (tier 1 only). These credits may be combined to offset up to 50% of the taxpayer’s state income and franchise tax liability, and unused credits may be carried forward for up to five years (15-year carry-forwards apply to the Credit for Investing in Real Property and 20-year carry-forwards exist for taxpayers that invest at least $150 million over a two-year period). Credits vary by geographic location with more distressed areas receiving higher credits. Job Development Investment Grant Program (JDIG) is a discretionary incentive that provides sustained, annual grants to new and expanding business measured against a percentage of withholding taxes paid by new employees. The program is authorized to award from 10 percent to 75 percent of withholdings for eligible positions. Grants awarded under the JDIG program can result in payments to up to 25 businesses per year for up to 12 years per business. The total amount awarded in a given year cannot exceed $15 million. One North Carolina Fund is a flexible, discretionary tool that can be used in competitive situations in which North Carolina must respond quickly to enable job creation and/or retention within its borders. Its purpose is to attract and retain sustainable investments and jobs to North Carolina communities, to stimulate state and local economies, and to provide resources to enable communities to improve their economic development infrastructures, expand their tax bases, and improve their general economic health and welfare. North Carolina Economic Infrastructure Fund, created by the General Assembly in July 2004, is a $20 million initiative to stimulate business growth and job creation in rural and low- Source: the Biotechnology Center's strategic plan, “New Jobs Across North Carolina: A Strategic Plan for Growing the Economy Statewide through Biotechnology”, January 2004. Fifty-four strategies to facilitate growth in this critical industry are addressed at the Center’s Web site, http://www.ncbiotech.org/ncindustry/stragplan/strategicplan.cfm#stratplan. 37 of 138 Approved by USDOL June 29, 2007 wealth communities. The funds are administered by the North Carolina Rural Center through four programs designed to update water and sewer facilities, provide business and technology assistance, renovate and restore buildings for new and expanding businesses, and invest in major research and development projects with the potential to stimulate job growth in rural and distressed areas. Industrial Revenue Bonds & Composite Bonds provide low-interest capital for new and existing manufacturers, with goals of sustaining and growing industrial employment in North Carolina. Community Development Block Grants are accessible to local governments to fund infrastructure projects that will serve a business that commits to create quality jobs for low- and moderate-income persons. Industrial Development Fund (IDF) assists town, city or county governments with project financing in the more distressed counties of the North Carolina. As an incentive for job creation by new or expanding industry, local units of government utilized the IDF to provide infrastructure improvements in the form of grants or loans for building renovation and equipment to companies that commit to create quality jobs. The new tier structure under the Article 3J tax credit program provides for a portion of the total JDIG grant made to a project located in a tier 2 or 3 county to be payable to the Utility Account of the Industrial Development Fund pursuant to G.S. 143B- 437.61. Before 2007, 25 percent of the JDIG grant liability in tiers 4 and 5 were set aside into the Utility Account of the Industrial Development Fund. Starting in 2007, 15 percent in a tier 2 is put into the account and 25 percent for a tier 3. To date, the amount transferred to the Utility Account of the Industrial Development Fund from JDIG totals $1.8 million. The amount to IDF through the JDIG program will grow over time. 3. Provide state-of-the-art public/private partnerships for training and knowledge transfer for high-growth industry clusters. is the collaboration between the National Aerospace Development Center (NADC) and strategic partners in the State of North Carolina, academia, and private industry that make up the North Carolina Aerospace Workforce Development Alliance (NCAWDA). The primary objective of the NCAWDA is to promote the growth of the aerospace industry through targeted solutions that address issues related to the industry’s changing workforce demographic. The North Carolina Aerospace Initiative is an extension of the National Aerospace Workforce Solutions Initiative (NAWSI). NAWSI was developed by NADC in response to the growing national aerospace workforce crisis as identified by the President’s Commission on the Future of the U. S. Aerospace Industry. Regional Skills Alliances have proved to be an effective model for regional economic development strategic planning, in which employers within key sectors, public agencies, and schools share information and leverage resources to train workers for region-wide needs and opportunities. The goal of these alliances is to promote collaboration and coordinated strategic planning for economic development, community development, and workforce development among the many agencies involved in those activities. University Technology Transfer Development Initiative (TDI) is a UNC system initiative created with funding from the National Science Foundation (NSF). The goal of TDI is to examine and increase capabilities and resources that support technology transfer at the 16 UNC institutions. The study and recommendations are available at http://intranet.northcarolina.edu/docs/aa/research/initiatives/TDI_Interim_report_June_03.pdf. 38 of 138 Approved by USDOL June 29, 2007 The Millennial Campus Act makes it possible for any UNC system institution to develop facilities that promote university/government/industry partnership through physical proximity of participating organizations and through programs designed to foster collaboration between the three sectors. Millennial Campuses capitalize on the State’s considerable research strengths in areas such as biotechnology, education, information sciences, and microelectronics. A major goal of this program is to encourage the formation of start-ups by promoting synergies resulting from collaboration of research and development efforts at local universities and local entrepreneurs. North Carolina Motorsports Testing and Research Complex, a proposed research complex to be housed at UNC-Charlotte, is planned to strengthen and expand the productive industry clusters already present in North Carolina in motorsports, high-end automotive parts manufacturing, and the military. This proposed research complex would facilitate growth by building synergies and promoting technology transfer amongst these clusters. is a public/private enterprise that is developing a 630-acre site specifically for research and development testing of new automotive and transportation technologies. This will include a 2.5 mile development track built to accommodate automotive and truck testing needs (and be funded through donations), garages and office space needed by client users, and a wide range of shared testing labs with specialized facilities for the testing of alternative fuel technologies, including bio-diesel, hydrogen, and fuel cell labs. Facilities at the Center will be available on a lease basis based on client needs. The groundbreaking was in April 2006. The state provided start-up funding in 2006-07 of approximately $7.5 million and currently proposals are for approximately $11.5 million for capital improvements and $3 million for operating expenses through fiscal 2008-09. The NC Department of Commerce is working with NCSU’s College of Textiles (COT) in order to increase the competitiveness of the textile industry through knowledge transfer and training as part of two initiatives. The first is developing an industry data warehouse and related collaboration website. The textile, apparel, and hosiery industry would be able to connect for training and knowledge transfer in order to increase the competitiveness of the industry. In addition, the COT would hold educational seminars for the industry. The second is research on developing the technical textile performance sector of the industry. Industry focus groups would be used to determine the needs of this competitive and growing industry sector in North Carolina and ways to become the leading location for this sector. The strategy is to grow the dynamic portions of the textile complex and move dislocated textile workers to this sector. 4. Target additional resources to better serve North Carolinians who are most in need. Target resources and services to workers who need transition assistance so that they may be prepared for and benefit from North Carolina’s changing economy and job opportunities. This targeting of resources and services will require the following: • Expansion of incumbent worker training opportunities for businesses and their employees to increase worker productivity and to avert worker dislocations. • A comprehensive strategy for dislocated worker transition assistance to training, support services, and reemployment. • Targeting services and resources to new and existing worker pools that may require special education, training, and support services. These worker pools include disadvantaged youth (including youth dropouts), the (increasing) immigrant population, new labor market entrants, and low-wage workers. North Carolina has joined with the National Governor’s Association in their Policy Academy on Sector Strategies. The state applied in 2006 and was accepted. The initial sector chosen was Allied Health. Plans are to continue with Allied Health and to develop the workforce strategy for 39 of 138 Approved by USDOL June 29, 2007 other growth sectors in the state. The goal is to enable regional workforce intermediaries to meet the growing need for a skilled workforce within the sector by integrating workforce and economic development strategies. As described by the sector strategy vision: North Carolina is committed to the development of sector strategies that include substantial employer engagement, deep community connections, career advancement opportunities, integrated service delivery and support, industry driven education and training, and connected, regionally based networks. This common workforce development agenda will support flexibility, innovation, and effective use of resources and services. The 24 local WDBs in North Carolina are the primary workforce intermediaries for developing and sustaining partnerships and collaborations that define workforce needs and gaps in local communities. The Commission on Workforce Development expects each local board to be a “convener” of workforce development stakeholders to address, on a continual basis, workforce and economic issues. North Carolina recognizes, however, the need to build local WDB capacity to meet the expectations that the State, in particular the Commission, believes local boards should have. Specifically, the State will work with local WDBs and local officials to strengthen the boards’ abilities to promote and sustain partnerships that accomplish the following: • Organize multiple public and private partners and funding sources around common goals; • Understand the special needs of business and industry and influence the development of services and programs in response to those needs; and • Promote innovation in finding solutions to workforce issues. Section 1.D describes the Commission’s focus and activities in regard to building local workforce development board capacity. The State will also continue to support strategies that meet the worker recruitment and retention needs of key industry sectors within North Carolina. Title I WIA funds have been used to support the development of regional skills alliances in two of the 24 local workforce areas. These alliances, at the regional level, include employers within key sectors, public agencies, and education and training institutions who share information and leverage resources to train workers for region-wide needs and opportunities. North Carolina looks for opportunities to target existing state and federal resources to support workforce needs in high-growth industries and high-demand occupations. WIA statewide activities funds are used to leverage and support community college-based training programs in high-growth or high-demand occupations. This funding stream is also used to leverage federal and state grants received by North Carolina workforce entities at both state and local levels that target training in growth industries, demand occupations, and targeted labor pools. Training in high-growth/high-demand occupations through the Incumbent Workforce Development Training Program is supported. This program, funded with WIA statewide activities resources, also 40 of 138 Approved by USDOL June 29, 2007 complements the state-funded, community college-based NEIT program by providing training assistance to existing industries that do not qualify for NEIT training assistance. The State is also using system resources to build the capacity of business services at the local level. Special grants are provided to local WDBs so they can fund demonstration projects that build local board capacity, develop partnerships with key business sectors, and strengthen their understanding of local labor markets and business needs. North Carolina’s system resources will continue to target and support innovations that are responsive to business and community needs. The State has used WIA funding to support local workforce development boards capacity to establish business services staff positions that work with the board and the JobLink service delivery system to ensure that appropriate relationships and connections are made with the business and economic development community. Section 1.D describes the states plans for supporting the implementation of regional sector strategies in North Carolina that will target training and related resources to industry sectors with potential for sustainable growth. North Carolina is a state dominated by small businesses. Services and benefits provided for education, employment, and training in the workforce development system are designed from a “small-business-as-customer” perspective. The JobLink Career Center system is designed to meet the human resource needs of small business. This design is based on the premise that small businesses have fewer resources for human resources and development than larger businesses have. Because surveys and focus groups have determined that small businesses are not aware of services available through the JobLink network, the State’s focus is on marketing the North Carolina JobLink Career System on a statewide level. All of the 58 community colleges in North Carolina have small business centers that support existing small businesses with services and information, and also provide small business development training for entrepreneurs needing assistance in starting small businesses. The State has provided grants to the community college system to support curriculum development for small business training, and also to support a special collaboration to train dislocated workers in small business development within the small business centers. The Business ServiCenter is a business service call center within DOC that quickly and efficiently guides small and medium businesses to appropriate business services, including workforce recruitment, training services, and retention resources and services. Industry specialists guide businesses to existing programs and resources that may lead to improved worker productivity and company profitability. The New Opportunities for Workers (NOW) program is a collaborative initiative between the State Board, the North Carolina Rural Center, NCCCS, and NC REAL Enterprises. This program provides entrepreneurship/small business development training to dislocated workers who have the appropriate level of serious interest in starting a business as their personal strategy for reemployment and self-sufficiency. The North Carolina Rural Center has also spearheaded the organization of the North Carolina Business Resource Alliance, which is a coalition of organizations that support small business. Through the Rural Center and the Business Resource Alliance, an entrepreneurship education and training directory has been produced and is available to JobLink Centers and other workforce development entities throughout North Carolina. 41 of 138 Approved by USDOL June 29, 2007 The UNC system has 17 Small Business and Technology Development Centers across North Carolina. Each of these centers is affiliated with a university, and each helps small businesses or those interested in starting a small business. Services include management counseling (operations, planning, and human resources) and educational services, business research, and technology commercialization. The majority of the grants to North Carolina businesses for training existing workers in the Incumbent Workforce Development Training Program and in the NEIT program are awarded to small and medium size businesses. Statewide activities funds are used specifically to support workforce development activities that complement the Governor’s vision and the strategic focus of the Commission on Workforce Development, both of which are closely aligned with the national strategic direction. Statewide activities funds are used in a number of ways: • To support competitive grant programs to local workforce areas for incumbent worker customized training for companies in high-growth/high-demand industries. • To support funding for special projects at the local level for the development of regional skills alliances and other projects that strengthens the connection between the workforce system and business and industry. • To support the community college system in areas of system capacity to meet the needs of business, to meet the needs of targeted labor pools, and to support innovations that lead to improvements in curriculum and training approaches for future skill needs of business and industry. • To incent the JobLink Career Center system to achieve enhanced levels of service integration and partnership building through the JobLink Chartering process (North Carolina’s One-Stop certification methodology). • To support projects that connect the services of community-based and non-profit entities in local communities with the services and benefits provided by partners within the JobLink network. • To fund grants to local workforce areas to support innovative approaches to serving youth. • To support the development of new computer based tools and resources within the Labor Market Information Division (LMID) and DOC that provide new and expanded labor market and economic information to state level partners, local boards, and local JobLink service delivery staff. Involvement and continued support for strategies by several agencies and organizations provide solid foundation point for this work. Examples of these strategies include the following: • Increase apprenticeship opportunities to dropout youth; • Allow youth to enter a formal apprenticeship while pursuing a GED rather than requiring a high school diploma prior to enrollment; 42 of 138 Approved by USDOL June 29, 2007 • Require 240 hours of paid work experience as a graduation requirement for those youth pursuing the Occupational Course of Study, often a factor of keeping youth engaged in school; • Provide enhanced services to long-term foster youth. Challenge for Children is a strategy of DHHS that makes the reduction of foster care backlogs a top social services priority. This strategy focuses on children who are long-term in the system and are starting to “age out”. • Provide quality and free child care to children of young teen parents, who themselves are often school dropouts; and • Improve behavior of troubled youth by providing residential wilderness camp experiences. • Continue regularly scheduled state and local area workforce partners meetings across the state to include but not limited to 24 local workforce area directors and state agency representatives from Vocational Rehabilitation, Community Colleges, Employment Security, Public Instruction, Rural Center, Corrections, and Juvenile Justice. Agency representatives were pulled together to plan the calendar year meetings and are asked for input throughout the year as each agenda is set prior to the next meeting. • Continue annual workforce partners’ conference held each Fall to include all partnering agencies and tracks that represent emerging issues and trends. • Contribute to a Youth Summit to be planned by local workforce area Youth Leads for youth customers. Additional strategies include the following: Juvenile Justice - Strategies include these specific programs: • Juvenile Crime Prevention Councils – operate in all counties and are charged with the development of strategies to intervene, respond to and treat the needs of juveniles at risk of delinquency. Juvenile Crime Prevention Council members work to fund these types of services and programs in their local communities: Counseling, Home-based family services, Treatment centers, Psychological services, Residential group homes, Restitution, Specialized foster care, Shelter care, and Guided growth programs. • Support our Students - prevention program that addresses the predictors of dropping out: lack of a caring adult, grade retention due to academic performance, and school attendance. • Eckerd Youth Alternatives - a residential wilderness camp for youth ages 10-17 who have behavioral problems. Since poor behavior is a predictor of dropping out and youth will exit the program just prior to the legal, allowable age for dropping out, this strategy for helping youth transition out of the last year of the program has potential for dropouts. • The Center for the Prevention of School Violence has been a part of the North Carolina Department of Juvenile Justice and Delinquency Prevention (DJJDP - Center) since 2000. The DJJDP - Center serves as a resource center and "think tank" for efforts that are directed at guiding all youth toward becoming productive members of their schools and communities. The Center provides information and technical assistance to those who are motivated to help young people positively develop in environments that are as safe as possible. North Carolina State Occupational Information Coordinating Committee (NC SOICC) – one strategy to promote cross-agency collaboration is to enhance youth access to and utilization of NC SOICC career resources for youth. Building on NC SOICC’s unique history of interagency product creation and training, State employees who work with youth will continue to participate in NC SOICC’s professional training opportunities and to facilitate ongoing development of North Carolina-specific resources that link academic and career planning for youth. 43 of 138 Approved by USDOL June 29, 2007 College Foundation of North Carolina is a nonprofit partnership between Pathways of North Carolina, College Foundation, Inc., and the North Carolina State Education Assistance Authority. These organizations have broad expertise in helping students to prepare successfully for college and to find the best financial aid alternatives. Together, they provide a complete and comprehensive source of information - and real solutions - for students and their families. • GEAR UP, Gaining Early Awareness and |
OCLC number | 794938916 |